Is Decred Halal: Is DCR Coin Halal?

In this article we do a complete shariah screening of Decred cryptocurrency, to see if DRC coin is halal or haram. The simple answer is yes, Muslims may trade, invest and stake DRC crypto, but please read on to find out what the Muslim crypto community has to say about it.

From investing, trading to staking, we’ve got your halal crypto investments covered.

What is Decred DRC?

Decred, a strong hybrid proof-of-work, proof-of-stake (PoS PoS) cryptocurrency, focuses on community input and open governance. Its hybrid consensus and on-chain governance methods safeguard it from centralization.

Decred originated in April 2013, when a pseudonymous developer named tacotime responded to a thread on Bitcointalk that mentioned they were thinking up a new cryptocurrency. Then, following the announcement, a technical spec of the idea would be released with a whitepaper, titled “Memcoin 2 (MC2).”

In June 2017 Decred was the first blockchain to make a successful direct on-chain user-activated consensus vote. In October 2018 Decred’s Politeia proposal system launched, allowing Decred stakeholders and users to propose, discuss, collaborate on, and fund new projects, initiatives, and consensus changes on an off-chain platform.

Further details on Decred website

Who Invests In Decred?

Parallax Digital

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Decred Technology

Decred, the programmable blockchain protocol, is a distributed ledger of unspent transaction outputs (UTXOs) in the form of append-only data blocks. A network of mining nodes validates, propagates, and fosters acceptance of unconfirmed transactions (mempool) to form new blocks.

Legitimacy Screening of DRC

Decred has a legitimate product, built using blockchain technology and has public roadmap showing its development plans. This gives us the confidence to confirm that DRC has an underlying fundamental value, that can be considered as “Mal” under Islamic rulings. Therefore, as a project it has legitimacy in terms of Shariah.

Is Decred project aligned with Islamic values?

Yes, Decred: DRC project does align with Islamic values as its directly comparable to bitcoin, which is not against Islamic ruling.

Financial Screening of DRC:

Financial screening ensures that the crypto asset meets the financial criteria for Shariah compliance, if it is an equity based token. Decred is not backed by any equity, so there is no financial screening required on this coin/ token. Here we would typically look at things like debt to income ratio to ensure borrowing is limited to a tolerable level.

DRC Token Screening for Shariah Compliance

DCR is used by the network as native currency. DCR may be utilized for peer-to-peer payments, stored value, and Decred’s POS consensus governance procedures.

Based on this the token is permissable so Decred: DRC token is considered halal. 

Is Staking DRC Halal?       

Yes, staking Decred: DRC is Halal. By receiving Decred tickets, users on a Decred-based network may confirm blocks generated by the POW miner collective and vote on Decred governance proposals during voting periods. Each block 5 tickets, or non-tradable Decred, are selected by a random process from among all Decred tickets to validate Decred blocks.

This method of staking is permissable and in line with Islamic law.

What Does The Muslim Crypto Community Think of DRC?           

Crypto Halal Office for Monitoring and Sharia auditing on cryptocurrency markets thinks Decred: DRC is a Halal digital asset based on its Shariah complaince screening.

Marhaba DiFi‘s Shariah governance board also beleives Decred: DRC is a halal crypto.  

Islamic Finance Guru (IFG) believes Decred: DRC is a halal cryptocurrency based on its method of Shariah complaince screening.

Sharlife considers Decred: DRC as a halal cryptocurrency based on the five areas assessed for Shariah complaince screening. 

If you know of other academic or scholarly views on this, please add in comments and we will update accordingly. Alternatively, you may want to join our community of Muslims crypto investors and traders, to share, learn and profit from halal digital assets.          

Is Decred Halal: Is DRCHalal?

Yes, Decred: DRC is Halal as its operates as a store of value, just like Bitcoin, but using both proof of work and proof of stake consensus mechanisms. Decred’s entire system and its token are compliant with Shariah and so Muslims may trade and invest in DRC.  

We hope you found this useful. Please view our Halal Crypto List to find suitable digital asset investments, without compromising your Islamic faith.