Is Celo (CELO) Halal or Haram?
Shariah compliance review of Celo (CELO) by Islamic finance scholars at EthicalNode, with separate verdicts for trading and for staking.
Trading verdict: Comfortable
Celo is a carbon-negative, permissionless blockchain that boasts a diverse ecosystem of global partners developing innovative Web3 dApps aimed at fostering a more inclusive financial system. It is accessible to anyone with a mobile phone and features a decentralized, proof-of-stake blockchain technology stack (the Celo platform), the CELO governance asset, and various Mento stable assets (cUSD, cEUR, cREAL) that enable real-world users to engage with digital assets. The open-source Celo mainnet was launched on Earth Day 2020. The Celo community has passed an indicative on-chain governance proposal (temperature check) to transition Celo to an Ethereum layer-2 solution. With validators from Google Cloud, Deutsche Telekom, Telefonica, and others operating on the Celo Platform, it currently supports over 1,000 projects in more than 150 countries, all working to create conditions for widespread prosperity. Sharlife.my Analisys: CELO was classified as Shariah-compliant.
Staking verdict: Questionable
Permissibility of staking is questionable, because it is a layer 1 blockchain, with various dApps running their applications on the blockchain, including DEFI, Lending and Borrowing, Gambling, etc, hence impermissible transactions might get recorder in L1 blocks, thus benefiting validators with commissions. It is better to avoid staking this protocols until we receive final fatwas from high rank scholars.
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