In this article we do a complete shariah screening of HIVE cryptocurrency. From investing, trading to staking, we’ve got your halal crypto investments covered.
What is HIVE?
Hive is a platform for creating decentralized applications (dApps) that consists of a contentious chain split with Steem. As a result of the fork, the Hive network consists of all previously created Steem content.
After Tron acquired popular Steem-based app, Steemit Inc., including its STEEM holdings, a fierce rivalry ensued between the Steemit community and the Tron Foundation. Hive did not distribute HIVE tokens to accounts associated with Steem so that their vision of an enemy would not have a stake in this organization.
Further details on HIVE website
Is HIVE Halal? We’d Love to Hear Your Thoughts
Sharing the collective wisdom of thousands of Muslim crypto traders and investors.
After the March 20, 2020, hard fork of Steem, the previous Steem developers went on to launch a new blockchain project called Hive. Hive included all of the data from prior Steemit blog posts, giving any STEEM-based projects the option of porting their operations over to Hive without losing any data.
Legitimacy Screening of HIVE
Cosmos has a legitimate product, built using blockchain technology and has public roadmap showing its development plans. This gives us the confidence to confirm that HIVE 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 HIVE project aligned with Islamic values?
Yes, HIVE project does align with Islamic values as developers actively use the Hive environment to build dApps; it’s comparable to a layer 1 protocol, so is not against Islamic ruling.
Financial Screening of HIVE:
Financial screening ensures that the crypto asset meets the financial criteria for Sharia compliance, if it is an equity based token. HIVE 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.
HIVE Token Screening for Shariah Compliance
As part of the fork, Hive airdropped HIVE tokens (as well as Hive Dollar, the Hive equivalent of Steem Dollar) to existing Steem accounts; other than those that were initially linked to the so-called “ninja-mined stake” that belong to Steemit Inc.
To function as a stakeholder within Steem’s on-chain governance, users must now agree to lock up a certain amount of their tokens for 30 days before taking part in governance votes. Based on this the token is permissable so HIVE token is considered halal.
The Hive network includes HIVE and Hive Backed Dollars (HBD). HIVE is the native currency of the Hive ecosystem. It may be traded, staked, bought, and sold. Hive Backed Dollars are intended to be pegged to the United States Dollar (USD) at a one-to-one rate.
Is Staking HIVE Halal?
Yes, staking HIVE is Halal. The protocol’s block procurement procedure adheres to Islamic laws so staking is permissable.
What Does The Muslim Crypto Community Think of HIVE?
Crypto Halal Office for Monitoring and Sharia auditing on cryptocurrency markets thinks HIVE is a Halal digital asset based on its Shariah complaince screening.
Sharlife considers HIVE 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 HIVE Halal?
Yes, HIVE is Halal as it is home to more than 120 ecosystems of apps, communities, and projects, some of which are the most popular sites on the Web for Web 3 tools. Hive is also home to HiveBlog, an extremely popular blogging system, so this project is not against Shariah guidelines. Muslims may trade, invest and stake in HIVE.
We hope you found this useful. Please view our Halal Crypto List to find suitable digital asset investments, without compromising your Islamic faith.