HALAL Screening Cryptocurrency
Is Worldcoin Halal?
Complete Shariah Compliance Screening of Worldcoin to determine if it is a Halal or Haram cryptocurrency
Legitimacy Screening
What is Worldcoin
WLD, or Worldcoin, is a cryptocurrency designed to create a more inclusive global economy. It aims to give everyone a fair chance to participate in the digital financial world by distributing its tokens to people around the globe. The unique part about Worldcoin is its focus on identity verification; it uses a special device called the "Orb" to scan people's irises. This ensures that each person can only claim their share of tokens once, preventing fraud and making the distribution process fairer.
What makes WLD stand out is its mission to connect people and promote economic equality. By using biometric data for identity verification, it tackles the challenge of ensuring that everyone, even those without traditional banking access, can benefit from cryptocurrency. This innovative approach not only helps in building a more inclusive financial system but also sparks conversations about privacy and the future of digital identity.
Transparent and Credible Team
Our research identifies Sam Altman, Alex Blania, and Max Novendstern as key team members, noting their experience in AI and technology. This suggests a credible team, but the lack of specific details on their roles beyond the founders reduces the score slightly. Score: 75
Clear Use Case or Purpose
The project aims to build a global identity and financial network using iris recognition. While this is a clear purpose, the ethical concerns around biometric data collection impact the score. The "Islamic Scholars Opinions" document highlights that anything that has a clear, Halal utility is Shariah compliant. The utility of data collection through the "Orb" could be questioned as there is little transparency. Score: 65
Absence of Fraudulent Behavior
Worldcoin has undergone security audits by Nethermind, Least Authority, and Trail of Bits. These audits, while highlighting vulnerabilities, indicate an effort to ensure legitimacy. However, the multiple issues found, combined with concerns about data handling, reduce the score. Score: 60
Ethical Practices
Worldcoin emphasizes regulatory compliance and data protection. However, concerns about data privacy, particularly in how the "Orb" technology is implemented, the lack of transparency around data collection, and the "cash for scans" model that led to exploitation in some areas, reduce the score. The "scoring guideline" specifies that ethical practices should not just involve speculation like meme coins, but have integrity. Score: 50
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Worldcoin 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.
Worldcoin 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
Worldcoin 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 Worldcoin Halal?
- Are the staking operation aligned with Shariah-compliant structures.
- Does the staking avoid Gharar (excessive uncertainty) and Maysir (gambling)?
Worldcoin Shariah Compliance Score
- Total Shariah Compliance Score out of 100
- 27 different components researched
- More comprehensive than any other platform