Is Dymension (DYM) Halal or Haram?
Shariah compliance review of Dymension (DYM) by Islamic finance scholars at EthicalNode, with separate verdicts for trading and for staking.
Trading verdict: Questionable
Dymension is a Layer 1 blockchain that facilitates the development of RollApps, modular blockchains focused on scalability and customization. It provides security, liquidity, and transfer capabilities for these RollApps, leveraging the Inter-Blockchain Communication (IBC) standard for interoperability. The native token, DYM, powers the network and allows users to engage in governance and staking activities.<br><br>According to the analysis by Marhaba DeFi (Sahal Wallet Halal Screener), the project does not contain forbidden elements, and the token is considered Halal. However, Sharlife.my states that the DYM token is not permissible for Muslims because the project is based in Tel Aviv-Yafo, Israel.
Staking verdict: Questionable
Staking DYM involves participating in the governance protocol of the system. According to Sharlife.my, this staking does not engage in forbidden activities; instead, stakers receive rewards for 'voting' for a Governor of the ecosystem by delegating tokens to them. In return, the Governor shares the fees distributed by the Rollup built on DYM. The next question concerns the use cases of projects developed as Rollups within the ecosystem. If these projects offer applications that may involve forbidden or ambiguous activities, the legitimacy of staking could be questioned. Currently, we have not identified any elements that are explicitly forbidden in these applications. However, based on the analysis from the 'trading' section, we leave DYM staking as questionable, and individuals should make their own decisions by taking into account either Marhaba DeFi's or Sharlife's analyses.
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