The question of whether staking Ethereum is halal has been addressed by several Shariah committees, including Amanie Advisors, a registered Shariah advisory firm. With the Securities Commission Malaysia they confirm that participating in Ethereum’s Proof-of-Stake (PoS) consensus protocol aligns with Islamic principles.

However, a deeper dive into staking reveals some complexities. While staking itself can be permissible, Ethereum is a Layer 1 blockchain with decentralized apps (dApps) that may host impermissible activities like derivative trading, gambling, lending, and borrowing. These activities could potentially result in validators benefiting from questionable transactions that are recorded on the blockchain. 😬🔍

In light of this, we believe it is questionable to participate in staking for Ethereum until further analysis is conducted by modern scholars. This applies not only to Ethereum but also to other Layer 1 blockchains like Solana, Cardano, Polkadot, Tron, Ton, Mantra, Avalanche, Algorand, Chromia, WAX, EOS, etc. ⚖️

The Good News: There’s a solution! New technology has been developed that enables Ethereum block validation while avoiding interest-based transactions. We’re also working on enabling this technology on our platform and expanding it to ensure compliance with Islamic principles across various blockchains.

The Bottom Line: Staking on Layer 1 blockchains may not be entirely pure due to the potential for impermissible transactions. But innovation is paving the way for a solution that aligns with Shariah. 🙌