Is Kusama Halal: Is KSM Coin Halal?
In this article we do a complete shariah screening of Kusama: KSM Coin to determine if it is a halal or haram cryptocurrency. The short answer is yes, Muslims may trade and invest in KSM crypto, but please read on to find out more.
From investing, trading to staking, we’ve got your halal crypto investments covered.
What is Kusama?
Kusama is an alpha version of Polkadot that is an alternative to Polkadot. It is intended to serve as a sandbox for companies, permitting test runs of pre-release projects before they become essential for Polkadot’s mainnet. Kusama can also be a testbed for the Polkadot network before the mainnet launch. Kusama performs in the same way as its twin chain, Lagoa. Both chains use KSM, the native token, to function in association with the network.
Further details on Kusama website
Who Invests In Kusama?
Is Kusama Halal: Is KSM Coin Halal? We’d Love to Hear Your Thoughts
Sharing the collective wisdom of thousands of Muslim crypto traders and investors.
The Kusama Network is the development of Polkadot that is both technologically identical and the Kusama Network. Kusama intends to use a sharded model that makes it possible for parachains in the network to possess custom state transition functions. Based on Kusama s design, as long as a chain s logic can compile to WebAssembly (Wasm), it can connect to the Kusama as a parachain.
Kusama has a Relay-chain acting as the main chain of the system. Parachain proposes blocks of transactions to the Relay-chain validator, which is where the blocks need to be validated and checked for availability before proceeding.
Legitimacy Screening of Kusama
Kusama was founded in 2019 by Gavin Wood, founder of Polkadot and co-founder and former CTO of Ethereum. This gives us the confidence to confirm that KSM 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 Kusama project aligned with Islamic values?
Yes, Kusama: KSM project does align with Islamic values as the projects allows developers the ability to build Dapps on parachain that operate with other networks such as Ethereum and Polkadot. Nothing in the project is against Islamic ruling.
Financial Screening of KSM:
Financial screening ensures that the crypto asset meets the financial criteria for Shariah compliance, if it is an equity based token. Kusama 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.
KSM Token Screening for Shariah Compliance
Token Type: Native
Token Uses: Payments, Vote
KSM token holders can utilise tokens to validate transactions or launch a parachain. Pay for transaction and messaging fees. And vote on governance proposals or nominate validators. Based on this the token is permissable so Kusama: KSM token is considered halal.
Is Staking KSM Coin Halal?
Yes, staking Kusama: KSM is Halal. The staking method used by this blockchain project is permissable and in line with Islamic law.
The mechanism enables users to stake their coins alongside appropriate sums to get the slot, with the highest bidder getting a greater chance. For a week, the coin need to be locked without knowing the precise date of the coin will be unlocked. As soon as the coin is unlocked, the original owner will be able to claim their coin or re-auction it for a new slot.
What Does The Muslim Crypto Community Think of KSM?
Islamic Finance Guru believes Kusama: KSM is a halal cryptocurrency based on its method of Shariah complaince screening.
Crypto Halal Office for Monitoring and Sharia auditing on cryptocurrency markets thinks Kusama: KSM is a Halal digital asset based on its Shariah complaince screening.
Sharlife considers Kusama: KSM as a halal cryptocurrency based on the five areas assessed for Shariah complaince screening.
Marhaba DiFi‘s Shariah governance board also beleives Kusama: KSM coin is halal.
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 Kusama Halal: Is KSM Coin Halal?
Yes, Kusama: KSM is Halal as it’s ecosystem functions similar to other industry ecosystem platforms due to it providing Auction Mechanics as a parachain listing feature. After thorough analysis of its mechanism, we’re convinced that it’s free from gambling or usury elements. Crowdloan acts as an means to bring a group of lenders together to fund a particular bidding process. The larger the fund, the more often there is a probability to win the seal on the Parachain platform. We assess the substance of the system itself instead of the term “crowdloan” that could be questionable for some people.
We hope you found this useful. Please view our Halal Crypto List to find suitable digital asset investments, without compromising your Islamic faith.