Is EOS Crypto Coin Halal?
In this article we do a complete shariah screening of EOS cryptocurrency, to see if EOS coin is halal or haram. From investing, trading to staking, we’ve got your halal crypto investments covered.
What is EOS?
EOS is an open-source program created by the developers of Block.one and Dan Larimer. Its consensus mechanism is a delegated Proof-of-Stake (DPoS) system designed to secure the overall network and ensure process performance for running applications.
DPoS contributes to DPoS the scalability and throughput of EOS transactions to a comparatively greater extent than its equipped blockchains, but it leaves as a result no total decentralization and censorship resistance.
The project competes with other popular smart contract platforms, such as Ethereum ($ETH), NEO ($NEO), and Cardano ($ADA).
Further details on EOS website
Who Invests In EOS Crypto?
360 Innovation Capital
Is EOS Crypto Coin Halal? We’d Love to Hear Your Thoughts
Sharing the collective wisdom of thousands of Muslim crypto traders and investors.
Block.one developed EOS with scalability being a primary priority. In addition to its delegated Proof of Stake (DPoS) consensus mechanism, EOS uses Graphene technology to accomplish performance.
Legitimacy Screening of EOS
EOS has a legitimate product, built using blockchain technology and has public roadmap showing its development plans. This gives us the confidence to confirm that EOS 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 EOS project aligned with Islamic values?
Yes, EOS project does align with Islamic values as it is an open-source blockchain framework that helps developers, investors, and businesses build platforms. EOS acts similarly to Ethereum, a platform that enables others to build Dapps. Nothing in this project goes against Islamic ruling.
Financial Screening of EOS:
Financial screening ensures that the crypto asset meets the financial criteria for Shariah compliance, if it is an equity based token. EOS 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.
EOS Token Screening for Shariah Compliance
Ethereum and Bitcoin both have fees pertaining to blockchain-based token transfers that are not required for transactions on the EOS network. EOS network block producers have the ability to earn additional tokens only by creating new blocks, with which transactions on EOS are not entirely free. Only users that need to accumulate the network resource proportional to their activity need to pay a fee.
Based on this the token is permissable so EOS token is considered halal.
Is Staking EOS Coin Halal?
Yes, staking EOS is Halal. Users can stake EOS tokens and pay to rent CPU and NET, making use of EOS REX, an EOS-generated resource exchange.
Block Producers run nodes to maintain the EOS Mainnet. Everyone holding EOS tokens can vote for Block Producers of their choice. New block procurement method operated by this protocol complies with the Shariah rulings. This method of staking is permissable and in line with Islamic law.
What Does The Muslim Crypto Community Think of EOS?
Marhaba DiFi‘s Shariah governance board also beleives EOS is a halal crypto.
Crypto Halal Office for Monitoring and Sharia auditing on cryptocurrency markets thinks EOS is a Halal digital asset based on its Shariah complaince screening.
Islamic Finance Guru (IFG) believes EOS is a halal cryptocurrency based on its method of Shariah complaince screening.
Sharlife considers EOS 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 EOS Crypto Coin Halal?
Yes, EOS is Halal as it acts as a store of value in the same way as Bitcoin, however, it relies on proof of stake consensus mechanism. EOS is described as faster and more efficient than others when it comes to crypto transaction speeds and as far as we have assessed, we have not found anything contradicting Shariah guidelines.
We hope you found this useful. Please view our Halal Crypto List to find suitable digital asset investments, without compromising your Islamic faith.