Topic: [ANN][NEW!!!] ADAB - First Islamic Crypto Exchange, based on the Shariah norms - page 3. (Read 2045 times)

Our model of token economics: a limited number of tokens are emitted which are payment instruments in the Adab and FICE ecosystem, then every month 10% of the company's profits are sent to buy tokens, and they are burned, that is, destroyed. Thus, the number of users gradually increases, the turnover and the need for tokens increase, and their number is reduced. There is a deflation of the token, that is, its value increases. To prevent the token from falling, the company will buy it out at market value, but not lower than the nominal price of $ 0.1.

Why do you dare to buy back where you will get funds to do it and in what price range you will do it

One of the biggest ADAB Solutions' advantages is the 100% of the population which obviously leads to active participation. Although, active participation on the exchange will lead to dramatic grow of the ADAB tokens price.

For those people who do not understand concepts of Islamic Finance, we can offer a safeness of their money. ADAB Solutions guarantees to payback funds of the investors in case of force-major. Moreover, if purchased tokens rapidly or dramatically fall in its liquidity, ADAB Solutions guarantees to buyback all tokens from their holders by its initial estimated price of $ 0.10 per 1 ADAB Token.

Your concept is quite interesting, but how you will provide a trust to users who do not understand the concept of sharia

Ibn Taymiyyah states that there is no authentic evidence in the Shariah that requires the prohibition of every risk; in fact, it is known that Allah Almighty and His Messenger did not prohibit every risk nor everything of uncertain gain or loss or delivery. There is no authentic Shariah evidence that requires the prohibition of all these types; neither a text nor an analogy. What is prohibited of these types is that which involves acquiring the property of others illegitimately. The Shariah’s reason for prohibiting [a transaction] is the illegitimate acquisition of others’ property, and it is prohibited to acquire others’ property illegitimately even in the absence of risk.

Risk, in and of itself, is not prohibited. In fact, the presence of risk is a fundamental element to profit from a venture. The Islamic legal maxims state: “[The right to] profit [from something] goes with responsibility [for   it]”. Another maxim states: “Liability is an obligation accompanying gain” (al-Kasani, 1986)
 
Investing in high risk investments such as shares in a Shariah compliant start-up company cannot be deemed impermissible even though there is exposure to high risk. The volatility of such an investment will not impact the inherent compliance of the assets and transaction. Undeniably, trading, investments and gambling are all regarded as speculative risks. However, there are clear differences between gambling, trade and investments which highlight the difference in risk. Trading and investing are positive-sum games whilst gambling is a zero-sum game. Positive-sum games are where the parties gain together or lose together. In a partnership, partners mutually gain or mutually lose if the venture fails. In zero-sum games, one party gains at the expense of another. Considering cryptocurrency transactions, cryptocurrencies are  exchanged for a counter-exchange where both parties anticipate gain from their acquired asset. It is never guaranteed that one party will surely lose. Thus, such transactions are positive-sum games as both transacting parties anticipate gain. Therefore, cryptocurrency exchanges cannot be likened to Maysir and Qimar (gambling) due to the inherent difference between positive-sum and zero-sum games.

I am among those who are still doubtful about the law of trading. In my opinion tarading is like gambling and full of speculation. Trade in Islam requires an agreement between the seller and the buyer and both do not feel disadvantaged.
how does adab provide a solution about this?

Tokens will be issued after the end ICO.