HALAL Screening Cryptocurrency
Is Starknet Halal?
Complete Shariah Compliance Screening of Starknet to determine if it is a Halal or Haram cryptocurrency
Legitimacy Screening
What is Starknet
STRK, or Strike, is a cryptocurrency that focuses on making it easy for people to earn rewards through their everyday activities. Think of it like a digital wallet that not only stores your money but also helps you earn more just by using it. You can earn STRK by participating in various activities, like making purchases or engaging with the platform, which makes it a fun way to get rewarded for things you already do.
What makes STRK unique is its emphasis on user engagement and community. It’s designed to be user-friendly, so even if you’re new to crypto, you can easily understand how to earn and use it. Plus, it has a strong focus on transparency and security, ensuring that your transactions are safe. So, it’s not just about holding onto your coins; it’s about actively participating and benefiting from the growing world of cryptocurrency!
Transparent and Credible Team
The research report identifies several key team members and founders, including Eli Ben-Sasson, Uri Kolodny, and Alessandro Chiesa, all with strong backgrounds in computer science, mathematics and business. Additionally, advisors such as Andrew McLaughlin, Eric Wall and Heather Meeker bring further credibility to the project with experience in technology, public policy and law. The team is well-documented and their experience is relevant to the project, which justifies a high score. Score: 90
Clear Use Case or Purpose
The report clearly defines Starknet's purpose as a layer-2 scaling solution for Ethereum, using zk-STARK technology to improve transaction speed and reduce costs. The project aims to enhance scalability, security, and decentralization for the Ethereum network, which is a clear and legitimate use case. Score: 90
Absence of Fraudulent Behavior
The report states that Starknet has undergone security audits by firms like BlockApex. It also highlights that the Starknet Foundation is seeking a compliance lead to ensure regulatory adherence. There are several reputable blockchain explorers that verify the existence and operation of Starknet, such as Voyager and Starkscan. These factors indicate an absence of fraudulent behaviour. Score: 85
Ethical Practices
The project emphasizes decentralization, transparency, and community governance. The use of zero-knowledge proofs enhances privacy and security. However, the sources mention the risk of token loss, and potential attacks. Overall, the project demonstrates a commitment to ethical practices but these risks lower the score slightly. Score: 75
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Starknet 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.
Starknet 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
Starknet 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 Starknet Halal?
- Are the staking operation aligned with Shariah-compliant structures.
- Does the staking avoid Gharar (excessive uncertainty) and Maysir (gambling)?
Starknet Shariah Compliance Score
- Total Shariah Compliance Score out of 100
- 27 different components researched
- More comprehensive than any other platform