Is Maker (MKR) Halal or Haram?
Shariah compliance review of Maker (MKR) by Islamic finance scholars at EthicalNode, with separate verdicts for trading and for staking.
Trading verdict: Comfortable
Maker (MKR) is recognized as a digital asset on market operators approved by the Securities Commission of Malaysia, allowing it to operate within a Digital Asset Exchange. This recognition indicates that MKR has successfully passed the Shariah evaluation conducted by the Shariah Advisory Council of the Securities Commission Malaysia, confirming its compliance with Shariah principles. As a result, MKR is deemed a suitable option for investors in Malaysia seeking Shariah-compliant digital assets. Source: sharlife.my
Staking verdict: Comfortable
Maker token holders cannot engage in traditional staking methods like those found in Proof of Stake (PoS) networks. Instead, MKR holders can participate in the governance of the MakerDAO system by locking their MKR tokens in a smart contract known as the Maker Governance Contract. <br><br>This process, referred to as 'staking for governance,' enables MKR holders to vote on various proposals and decisions that affect the protocol's parameters, including stability fees, types of collateral, and system upgrades. Through this governance mechanism, MKR holders play a crucial role in shaping the future of the Maker ecosystem, ensuring that the system evolves in a way that aligns with the interests of its community. The other forms of deposit with fixed yield or deposits on CEX's that claim to be "staking" for this protocol is better to avoid, because it would not be actual Proof of Stake protocol.
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