HALAL Screening Cryptocurrency
Is Avalanche Halal?
Complete Shariah Compliance Screening of Avalanche to determine if it is a Halal or Haram cryptocurrency
Legitimacy Screening
What is Avalanche
AVAX, or Avalanche, is a type of cryptocurrency that aims to make transactions faster and cheaper than many other digital currencies. Think of it like a super-efficient highway for money and data, where cars (or transactions) can zoom through without getting stuck in traffic. It allows developers to create their own custom blockchains and decentralized applications, making it a versatile platform for various uses, from finance to gaming.
What makes AVAX unique is its ability to process thousands of transactions per second, which is way more than Bitcoin or Ethereum can handle. It uses a special technology called "consensus mechanism" that helps it achieve this speed while keeping everything secure. Plus, it has a strong focus on eco-friendliness, meaning it uses less energy compared to some other cryptocurrencies. So, it’s not just fast and cheap; it’s also a greener option in the crypto world!
Transparent and Credible Team
The report identifies the co-founders of Ava Labs (Emin Gün Sirer, Kevin Sekniqi, and Maofan Yin) and details their experience and roles. This suggests a transparent team with credible backgrounds. Score: 85
Clear Use Case or Purpose
The whitepaper clearly articulates Avalanche's purpose as a high-performance, scalable, customizable, and secure blockchain platform. It targets building application-specific blockchains, scalable dApps, and complex digital assets. This demonstrates a clear and legitimate use case. Score: 90
Absence of Fraudulent Behavior
The project has undergone multiple third-party audits by firms like Hacken, HashEx, and QuillAudits. These audits aim to ensure the security and reliability of the platform and its smart contracts. There is no mention of scams or rug-pull risks. Score: 90
Ethical Practices
The project emphasizes transparency through detailed documentation, community engagement via the Avalanche Academy, and compliance efforts, including KYC and AML. There are no major concerns about unethical practices. Score: 80
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Avalanche Halal Project Screening
- Are the project’s purpose and operation Shariah Compliant.
- Does the project operate ethically and transparently, without harm to society.
- Does the project promote positive societal or environmental outcomes.
Avalanche Financial Screening
- Does the revenue involve Riba (interest), Gharar (excessive uncertainty), or Haram activities.
- What red flags are hidden within the projects finances and are within permissible limits.
- Types of revenue generation activities and the percentage that may be Riba or interest based.
- Audits from reliable sources
Avalanche Token Screening
- Is the Token governance fair and ethical?
- Are profit-sharing mechanisms (e.g., staking rewards, dividends) compliant with Islamic Finance?
- Does the token’s design, or unlock schedule raise unethical concerns?
- Halal underlying asset, and free from impermissible elements
Is Staking Avalanche Halal?
- Are the staking operation aligned with Shariah-compliant structures.
- Does the staking avoid Gharar (excessive uncertainty) and Maysir (gambling)?
Avalanche Shariah Compliance Score
- Total Shariah Compliance Score out of 100
- 27 different components researched
- More comprehensive than any other platform