HALAL Screening Cryptocurrency
Is Axie Infinity Halal?
Complete Shariah Compliance Screening of Axie Infinity to determine if it is a Halal or Haram cryptocurrency
Legitimacy Screening
What is Axie Infinity
AXS, or Axie Infinity Shard, is a cryptocurrency that powers the Axie Infinity game, which is a fun and engaging online world where players can collect, breed, and battle cute creatures called Axies. Think of it like a digital pet game, but with a twist: players can earn real money by playing! AXS is used for various things in the game, like buying new Axies, participating in battles, and even voting on game decisions, making it a key part of the whole experience.
What makes AXS unique is its play-to-earn model, which allows players to earn rewards in the form of cryptocurrency just by playing the game. This means that not only can you enjoy the game, but you can also potentially make money while having fun! Plus, the community around Axie Infinity is super active, and the game has a vibrant economy where players can trade their Axies and other in-game assets. It’s like combining gaming with investing, and that’s what really sets AXS apart!
Transparent and Credible Team
Our research provides details on the founders and key team members such as Trung Thanh Nguyen, Aleksander Leonard Larsen, Tu Doan, Andy Ho and Jeffrey Zirlin, including their backgrounds and experience. This indicates a transparent team with relevant expertise. Score: 80
Clear Use Case or Purpose
The whitepaper and documentation outline Axie Infinity's purpose as a play-to-earn blockchain game. However, "Islamic Scholars Opinions" document notes that the use cases and focus of Axie Infinity do not add any real world value and promote a gaming culture which arguably has very little benefit. Therefore, the score should be lowered. Score: 60
Absence of Fraudulent Behavior
Axie Infinity has undergone audits by firms like Quantstamp and CertiK. Although some issues were identified, there's no evidence of scams or rug-pull risks. However, there was a significant hack in 2022, which raises concerns, which lowers the score. Score: 70
Ethical Practices
The project has community engagement initiatives and is transparent in governance. However, the "Islamic Scholars Opinions" document says that the game promotes a gaming culture, which it argues has little benefit, reducing the score. Score: 60
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Axie Infinity 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.
Axie Infinity 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
Axie Infinity 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 Axie Infinity Halal?
- Are the staking operation aligned with Shariah-compliant structures.
- Does the staking avoid Gharar (excessive uncertainty) and Maysir (gambling)?
Axie Infinity Shariah Compliance Score
- Total Shariah Compliance Score out of 100
- 27 different components researched
- More comprehensive than any other platform