Is IoTeX (IOTX) Halal or Haram?
Shariah compliance review of IoTeX (IOTX) by Islamic finance scholars at EthicalNode, with separate verdicts for trading and for staking.
Trading verdict: Comfortable
IoTeX is the only modular infrastructure in the DePIN sector that offers a comprehensive suite of tools for creating fully decentralized, composable, and interoperable DePIN projects. Unlike the current monolithic approach, IoTeX provides a flexible array of in-house DePIN Infrastructure Modules (DIMs) and Public Goods, along with modules contributed by third-party providers such as Filecoin, Risc0, NearDA, and Espresso, among others. Additionally, IoTeX introduces a revolutionary approach to its native token, $IOTX, which supports and connects the entire infrastructure, expanding its utility while maintaining a stable token supply through balanced burning, inflationary, and deflationary mechanisms.\n\nBy significantly reducing build time, initial capital costs, and the resources required to launch projects, IoTeX is embarking on a new roadmap aimed at onboarding 100 million devices and unlocking trillions of dollars in real-world value on-chain within the next 3-5 years, thereby realizing its mission of 'DePIN for Everyone. Sharlife.my Analisys: The ecosystem does not include any features that are prohibited and could potentially trigger Shariah compliance issues.
Staking verdict: Questionable
The IoTeX blockchain uses Roll-DPoS consensus (Randomized Delegated Proof-of-Stake). IoTeX designed this mechanism to support the high scalability required for IoT use cases. Roll-DPoS inherits all the advantages of the original DPoS consensus framework and further improves its capabilities. Unlike traditional DPoS that utilizes a fixed number of Delegates, Roll-DPoS randomly selects 24 of the top 36 community-voted Delegates to mine every hour, which greatly improves the decentralization and security of the IoTeX Network without sacrificing performance.<br><br>Permissibility of staking is questionable, because the platform allows to build smart-contracts, which means some applications might include lending, borrowing, gambling activities etc. Impermissible transactions might get recorder in 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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