HALAL Screening Cryptocurrency
Is Maker MKR Halal?
Complete Shariah Compliance Screening of Maker MKR to determine if it is a Halal or Haram cryptocurrency
Legitimacy Screening
What is Maker MKR
MKR, or Maker, is a cryptocurrency that plays a key role in the MakerDAO ecosystem, which is all about creating a stable digital currency called DAI. DAI is designed to maintain a stable value, usually pegged to the US dollar, making it easier for people to use in everyday transactions without worrying about wild price swings. MKR holders help govern the system, making decisions about how it operates and ensuring that DAI remains stable and secure.
What makes MKR unique is its dual role in the Maker ecosystem. Not only does it help manage the stability of DAI, but it also acts as a sort of safety net. If the value of the collateral backing DAI drops too low, MKR can be minted and sold to cover any losses, protecting the system. This means that MKR holders have a vested interest in keeping the whole system running smoothly, creating a community-driven approach to managing a stable cryptocurrency.
Transparent and Credible Team
The MakerDAO team is well-documented with known individuals like Rune Christensen (CEO), Steven Becker (President & COO), Shefali Roy (Economist), and Andy Milenius (CTO). Their backgrounds are provided, enhancing their credibility.
Score: 80
Clear Use Case or Purpose
Maker's purpose is clearly defined: to provide a decentralised platform for creating the DAI stablecoin through collateralised debt positions, governed by MKR token holders. The use case of maintaining DAI's stability is well documented.
Score: 95
Absence of Fraudulent Behavior
There is no evidence of scams or rug-pull risks. Multiple third-party audits by Callisto Network, PeckShield, and Zeppelin are cited. Although vulnerabilities were identified, they were addressed.
Score: 90
Ethical Practices
The project emphasises transparency, community-driven governance, and risk management. The platform uses smart contracts and decentralised decision-making, which aligns with ethical practices.
Score: 85
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Maker MKR 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.
Maker MKR 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
Maker MKR 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 Maker MKR Halal?
- Are the staking operation aligned with Shariah-compliant structures.
- Does the staking avoid Gharar (excessive uncertainty) and Maysir (gambling)?
Maker MKR Shariah Compliance Score
- Total Shariah Compliance Score out of 100
- 27 different components researched
- More comprehensive than any other platform