HALAL Screening Cryptocurrency
Is Stacks Halal?
Complete Shariah Compliance Screening of Stacks to determine if it is a Halal or Haram cryptocurrency
Legitimacy Screening
What is Stacks
STX, or Stacks, is a cryptocurrency that aims to bring smart contracts and decentralized applications to Bitcoin. Think of it as a way to enhance Bitcoin's capabilities, allowing developers to create apps that can use Bitcoin in new and exciting ways. While Bitcoin is primarily a digital currency, Stacks adds a layer that enables more complex functions, like creating decentralized finance (DeFi) projects or NFTs, all while benefiting from Bitcoin's security.
What makes Stacks unique is its connection to Bitcoin. Instead of trying to replace Bitcoin, it works alongside it, using a process called "proof of transfer" to secure its network. This means that when you use Stacks, you're essentially leveraging the power of Bitcoin, which is the most established and trusted cryptocurrency out there. So, if you're looking for a way to tap into the potential of Bitcoin while exploring new tech, Stacks is a cool option to consider!
Transparent and Credible Team
The report identifies Muneeb Ali and Ryan Shea as co-founders, detailing their educational and professional backgrounds. Muneeb Ali's PhD from Princeton and his work on regulatory frameworks, including the first SEC-qualified offering for a crypto asset, enhances the team's credibility. Score: 90
Clear Use Case or Purpose
Stacks is designed as a Bitcoin layer-2 solution, aiming to bring smart contracts and dApps to the Bitcoin network. This provides a clear and legitimate purpose for the project. Score: 90
Absence of Fraudulent Behavior
The project has undergone audits by firms such as QuillAudits, NCC Group and Trail of Bits. The SEC also concluded a three-year investigation into Stacks without any enforcement action, indicating no evidence of fraudulent behaviour. Score: 90
Ethical Practices
Stacks operates within existing legal frameworks, demonstrating commitment to regulatory compliance. There's also transparency in their development with an open-source platform and detailed documentation. Score: 85
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Stacks 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.
Stacks 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
Stacks 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 Stacks Halal?
- Are the staking operation aligned with Shariah-compliant structures.
- Does the staking avoid Gharar (excessive uncertainty) and Maysir (gambling)?
Stacks Shariah Compliance Score
- Total Shariah Compliance Score out of 100
- 27 different components researched
- More comprehensive than any other platform