Is Merlin Chain (MERL) Halal or Haram?
Shariah compliance review of Merlin Chain (MERL) by Islamic finance scholars at EthicalNode, with separate verdicts for trading and for staking.
Trading verdict: Comfortable
Merlin Chain serves as a Layer 2 solution for Bitcoin, incorporating essential components like ZK-Rollup networks, decentralized oracle networks, and fraud proofs within the Bitcoin chain. Its primary objective is to empower the native assets, protocols, and application ecosystem of Bitcoin Layer 1, facilitating ongoing innovation and maximizing asset potential on Layer 2 networks. <br><br>MERL is the native token of Merlin Chain which is used for: <br>Staking: Staking $MERL contributes to the overall security of Merlin Chain. <br>Collator Delegation: $MERL holders have the option to delegate their holdings with collators or stake $MERL to run their collators to secure the network. <br>Network Fees: Merlin L3 has the option to use $MERL to pay transaction fees. Native Liquidity & Collateral: $MERL token can be used in the Merlin ecosystem to serve as native liquidity and collateral. Sharlife.my: The projects run by Merlin Chain appear to be in accordance with Shariah principles.
Staking verdict: Questionable
Merlin Chain does not have actual Proof-of-Stake consensus protocol. Also, there are DeFi and lending protocols build on Merlin Chain, which is why at this point it would be advised to avoid participating in consensus protocol for MERL before we make further and deeper analysis. The analisys is similar to the one of Ethereum, Solana, Polkadot, Chromia, WAX and other projects.
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