HALAL Screening Cryptocurrency
Is The Graph Halal?
Complete Shariah Compliance Screening of The Graph to determine if it is a Halal or Haram cryptocurrency
Legitimacy Screening
What is The Graph
GRT, or The Graph, is a cryptocurrency that helps organize and access data from different blockchains, kind of like a search engine for blockchain information. Imagine you want to find specific information from a huge library of books; The Graph makes it easy to locate exactly what you need without sifting through everything. It allows developers to build applications that can quickly retrieve and use data from various decentralized networks, making it super useful for creating more efficient and user-friendly apps.
What makes GRT unique is its focus on indexing and querying blockchain data, which is essential for the growing world of decentralized finance (DeFi) and other blockchain applications. Instead of each app having to figure out how to access data on its own, The Graph provides a standardized way to do this, saving time and resources. Plus, it’s community-driven, meaning that anyone can contribute to its development and improvement, making it a collaborative effort in the crypto space!
Transparent and Credible Team
The report identifies the co-founders and provides their backgrounds, along with Tegan Kline as the CEO. This suggests a transparent team with a credible history. Score: 85
Clear Use Case or Purpose
The whitepaper clearly defines The Graph's purpose as a decentralized indexing protocol for blockchain data. This is a legitimate use case. Score: 90
Absence of Fraudulent Behavior
The project has undergone a third-party audit by OpenZeppelin, though it identified some issues that have been addressed. There's no mention of scams or rug-pulls. Score: 85
Ethical Practices
The project has mechanisms for data integrity, decentralized governance, and token-based incentives. There's no evidence of unethical practices, though the governance is not fully transparent in the initial stages. Score: 80
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The Graph 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.
The Graph 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
The Graph 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 The Graph Halal?
- Are the staking operation aligned with Shariah-compliant structures.
- Does the staking avoid Gharar (excessive uncertainty) and Maysir (gambling)?
The Graph Shariah Compliance Score
- Total Shariah Compliance Score out of 100
- 27 different components researched
- More comprehensive than any other platform