HALAL Screening Cryptocurrency
Is Tezos Halal?
Complete Shariah Compliance Screening of Tezos to determine if it is a Halal or Haram cryptocurrency
Legitimacy Screening
What is Tezos
XTZ, also known as Tezos, is a type of cryptocurrency that operates on its own blockchain. Think of it like a digital version of money that you can use online, but it’s also a platform where developers can build and run applications. What makes Tezos special is its ability to upgrade itself without needing to create a whole new version, which means it can adapt and improve over time without causing disruptions.
One of the coolest features of Tezos is its focus on governance. This means that the people who hold XTZ tokens can vote on changes and upgrades to the network, giving them a say in its future. This democratic approach helps ensure that the platform evolves in a way that benefits its users. Plus, Tezos uses a unique method called "liquid proof-of-stake," which allows more people to participate in securing the network and earning rewards, making it more inclusive and efficient!
Transparent and Credible Team
The report provides information about the founders, Arthur and Kathleen Breitman, and their backgrounds. This suggests a transparent team with a credible history, warranting a high score. However, controversies during the ICO and claims about partnerships raise some concerns.
Score: 80
Clear Use Case or Purpose
The whitepaper clearly explains Tezos's purpose, design, and technical details, including self-amending governance, proof of stake, and formal verification. This demonstrates a clear and legitimate use case.
Score: 90
Absence of Fraudulent Behavior
Tezos has undergone third-party audits and has official documentation, but there have been past controversies including lawssuits in relation to its ICO in 2017
Score: 80
Ethical Practices
The project emphasises transparency, and community-led governance. Tezos also uses a proof-of-stake mechanism which eliminates the need for high energy use. However, there have been some controversies about claims and marketing.
Score: 75
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Tezos 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.
Tezos 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
Tezos 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 Tezos Halal?
- Are the staking operation aligned with Shariah-compliant structures.
- Does the staking avoid Gharar (excessive uncertainty) and Maysir (gambling)?
Tezos Shariah Compliance Score
- Total Shariah Compliance Score out of 100
- 27 different components researched
- More comprehensive than any other platform