Topic: Staking is not for Muslims (Read 1255 times)

Staking in crypto is like interest in Fiat.
You lend (stake) your crypto and get reward (interest) for it.
I suggest all my Muslim brother to stay away from this new kind usury.

Well does it means that Muslims don't do business and make profits on they goods, because I don't see why it is forbidden that getting interest on you asset is a sin before God. Let be careful as not to misinforme our self's.

I as a Muslim do not really understand the law of staking but staking is like regular savings in a bank and you get annual interest, so in my opinion it's safe

Lol just because I didn't post something earlier means my intentions are bad?
There is no ruling by any scholar on staking yet, if tomorrow someone gives some ruling, will you counter him by saying same thing that staking has been with us for many years why you giving ruling now?
Actually many if you fear losing your income that's why you don't want to accept it as interest and give all baseless reasons to differentiate between two.

Staking coins has been with us for many years, why now OP is a hero member he knows this for several years what is the motive behind this, he should have posted this three or four days ago when staking is very popular, and his explanation sounds vague, we need a good scholar who will tell us if what OP is saying is really true and really according to Muslim teaching.

I'm interested on how Muslims treat it also.

Personally I have deposits in different banks and in our country banks credit us a quarter interest on deposit, so if that is not allowed in Muslims teaching then probably Muslims does not have a bank account in our country.

I like to hear what OP has to say about this...

I think apy in staking just like interest in banking industry but I also believe it a halal in way. We all deposit our property in Banks hence banking industry gives us profits. Just same Projects are giving us apy as we hold our assets in different exchanges or websites.

Profit on investment is allowed but lending money and earning interest on it is not.
If you invest in some ico/ieo and the projects share it's profit with its token holders, it is absolutely fine.
Staking is different. It's not investment, it is lending.

I am quite astonished with what OP has mentioned in this thread.So you are saying if you earn profit on your investments it is sin in Muslim culture?As many have mentioned how do do banks operate in Muslim regions as they are engaging in earning direct interest from customers which is not the case with staking as it is different concept.So you need to inquire first about what you are writing and then gave such comments as everyone wants to earn and if they are earning in any legit manner it is good until they are not hurting someone's sentiments.

muslim trader might still wants to work on customs as following returns with personal decision on expending efforts on preparation terms and applying strategics as expecting to gains from the market. there are many option of earning with the crypto finance that the use of offers might gives with no matter.

Staking in crypto is like interest in Fiat.
You lend (stake) your crypto and get reward (interest) for it.
I suggest all my Muslim brother to stay away from this new kind usury.

Profit and interest are two different things. Since you are unable to distinguish between two, you don't have any right to comment.
I created this thread to inform Muslims about staking. If it is not related to you, better avoid posting.

But If You Say Haram To DeFi (Farming, Liquidity Pool), I Will Say Yes To That.

There are many staking models. Each generalization is wrong (including this? ). First of all, interest and staking are not the same essentially. Why? Interest is a contract and needs at least two parties: lender and borrower. In "decentralized" (I'll touch centralized ones later) staking, there is no borrower since nobody or no institution (in case of decentralization) "has to" pay some extra money to the lender.  In fact, there also is no lender. Why? In interest case, the money of lender is used for "something". In staking, again nobody or no institution "is allowed to" use the lender's money. It is just frozen and decreases the "liquid" supply. Nothing else. So, since there is no lender and no borrower, there also is no contract. Yes, you may earn some extra "rate-guaranteed" money (block reward). If the coin is infinitely inflationary (I mean there is no max supply like fiats), this would be probably (... requires to study the details) haram. For the finite supply coins like Bitcoin, those block rewards are the incentives of the setup/preparation phase. If these don't exist, nobody or no group can set up a blockchain. Anyway, after some time, the rewards will be completely finished and the validators will earn extra but "not rate-guaranteed" money from the transactions. To me, this "not guaranteed" money is not interest but dividend. First of all, since the ratio (APR, APY or whatever) is not guaranteed, the validators have a risk of earning nothing. Besides, the validators carry the risk of losing their coins' value.

As for the centralized staking, if the centralized entity does not guarantee any extra money than the amount which the network provides and "really" stakes your assets, I think this isn't haram since the centralized entity and the lender have win-win situation. The centralized entity increases its liquid assets and the lender does not involve in the technical details. Other than this option, I do not think the centralized staking is halal.


As an example, I want to give my staking choice. Currently I stake on Binance Chain and I do not think it is haram.  First of all, it does not have block rewards. The doubt decreases I earn just from the daily transaction fees. Against this, I cannot move my assets for 7 days. So, I undertake an important risk: I cannot sell them in any unexpected market condition.

To sum up, to me, it cannot be said that "each staking model is haram". Each staking model should be examined by thinking about why interest is haram, similarities, differences. Please do not forget that this is a new economy and technology. Before saying that something is haram easily, Muslims should consider it "thoroughly". I think the former behavior harms the advancement of Muslims.

Well does it means that Muslims don't do business and make profits on they goods, because I don't see why it is forbidden that getting interest on you asset is a sin before God. Let be careful as not to misinforme our self's.

Staking in crypto is like interest in Fiat.
You lend (stake) your crypto and get reward (interest) for it.
I suggest all my Muslim brother to stay away from this new kind usury.