HALAL Screening Cryptocurrency
Is THORChain Halal?
Complete Shariah Compliance Screening of THORChain to determine if it is a Halal or Haram cryptocurrency
Legitimacy Screening
What is THORChain
RUNE is the native cryptocurrency of the THORChain network, which is designed to make it easy for people to swap different cryptocurrencies without needing a centralized exchange. Think of it like a bridge that connects various digital currencies, allowing you to trade them directly with one another. This means you can exchange Bitcoin for Ethereum, for example, without having to go through a traditional platform that might charge high fees or require you to create an account.
What makes RUNE unique is its focus on decentralization and liquidity. It uses a system called Automated Market Makers (AMMs) to ensure there are always enough funds available for trading, which helps keep the process smooth and efficient. Plus, RUNE acts as a sort of "glue" that ties all these different currencies together, making it a key player in the ecosystem. So, if you're looking to swap your crypto easily and securely, RUNE and THORChain offer a cool solution!
Transparent and Credible Team
Our research identifies JP Thor (John-Paul Thorbjornsen) as a key figure, and describes his background, while noting he operated under a pseudonym for 6 years. The team is described as decentralized.
Score: 75
Clear Use Case or Purpose
THORChain is designed to enable seamless cross-chain swaps of native assets. The report details it's technical operations, highlighting its decentralized nature and utility.
Score: 90
Absence of Fraudulent Behavior
The project has undergone audits by Trail of Bits, Halborn and Kudelski. There is also an Immunefi bug bounty program. The report also notes exploits of millions of dollars in user funds and ongoing security issues.
Score: 65
Ethical Practices
THORChain's decentralised nature promotes community governance. However, the report notes a lack of explicit customer service. The report mentions THORChain is registered in Singapore and located in Switzerland. There is no evidence of unethical practices, but limited information on regulatory compliance.
Score: 70
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THORChain 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.
THORChain 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
THORChain 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 THORChain Halal?
- Are the staking operation aligned with Shariah-compliant structures.
- Does the staking avoid Gharar (excessive uncertainty) and Maysir (gambling)?
THORChain Shariah Compliance Score
- Total Shariah Compliance Score out of 100
- 27 different components researched
- More comprehensive than any other platform