Is Arweave (AR) Halal or Haram?
Shariah compliance review of Arweave (AR) by Islamic finance scholars at EthicalNode, with separate verdicts for trading and for staking.
Trading verdict: Comfortable
ARWEAVE is a protocol designed for permanent data storage, introducing a groundbreaking blockchain framework that enables a serverless web and truly immutable data retention. All features within this network operate on a neutral basis. One notable aspect is the Profit Sharing Tokens, which empower token holders to invest in new businesses or startups. This concept is straightforward and utilizes a Musharakah-based contract. We believe there are no issues with this contract, as it employs a profit-sharing model akin to purchasing shares. Therefore, we classify ARWEAVE as Shariah-compliant. Source: sharlife.my
Staking verdict: Non-Comfortable
Miners engage in a competitive process to mine blocks by demonstrating their possession of a randomly chosen byte from a prior block of stored data. This requires them to generate the corresponding chunk and provide proof of its location within the blockweave.<br><br>There is no Proof of Stake consensus mechanism Arweave, and the average user can not participate in it. Any deposits with fixed yield or custodial 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.
Browse all Shariah-compliant cryptocurrencies on the EthicalNode halal crypto screener.