Is Kaspa (KAS) Halal or Haram?
Shariah compliance review of Kaspa (KAS) by Islamic finance scholars at EthicalNode, with separate verdicts for trading and for staking.
Trading verdict: Questionable
Kaspa represents a promising blockchain initiative known for its high block rates, robust security features, and an innovative monetary policy inspired by the 12-note musical scale. Its extensive platform includes features such as Reachability, block data pruning, SPV proofs, and subnetwork support, all while adhering to Shariah principles. Led by DAGlabs, a research team under Yonatan Sompolinsky, Kaspa is focused on scaling cryptocurrency platforms. It is important to note that DAGlabs is located in Tel Aviv, Israel. We conclude that it is non-Shariah compliant due to the current circumstances in Palestine. While transactions with Jews are generally permissible, the ongoing conflict and oppression faced by Muslims in Palestine lead us to advise against engaging with Israeli technology to avoid indirectly supporting their actions. This decision aligns with the Islamic legal maxim which states: Avoiding harm is prioritized over gaining benefits. Source: sharlife.my
Staking verdict: Non-Comfortable
There is no Proof of Stake consensus, the chain functions on Proof of Work protocol, which is "mining". This is why any so called "staking" or other instrument with a fixed yield for this cryptocurrency is at least questionable, because it lacks participating in creating new blockchain transactions in the blockchain. You can read more about Proof-of-Stake protocol on our Blogs section below this crypto list. However, we are not talking about other pledge or liquidity instruments that involves KAS, it will have a separate ruling. For the reasons outlined in the 'Trading' column, it is advisable to refrain from participating in the Proof-of-Work consensus protocol of this chain as well.
Browse all Shariah-compliant cryptocurrencies on the EthicalNode halal crypto screener.