Topic: Staking is not for Muslims - page 2. (Read 1255 times)

What is meant by interest is what Islam does not want. or maybe what is considered haram.
but for me, the stake is not something like interest. it is only a gift given in varying amounts according to the agreed terms.
we will think of it as a gift from what we lend to someone or the platform.

On this note, it is Profit making. You are allowed to make profits from your business or what ever lawful investments you might engage in but not to Borrow or Lend and pay or collect interest on the money you borrowed or Lend and this is for the Islamic Banks (simply explained)


I guess the poster must have learnt the difference in this case as I believe there are enough explanations with regards to his misunderstanding of both Staking and Lending and some time, some of us wants to over burden our self with what was suppose to be easy which is also kicked against i.e. in the religion.

I think betting in crypto is different from betting outside my friend, in my opinion, betting in crypto in my opinion is like we save in a bank and get daily / monthly interest without we lend to other people, because the bet here aims to mine
I don't know what in your mind equates staking with usury, to be honest I am not a religious person, but I understand what is good and bad I think it's better to play in crypto than in the real world when it comes to money

Ok, fair point. But are you telling me that not a single bank in the arab world has interest on the loans they give to the people?
Without interest on loans, banks make no profit.

If they do have that kind of rule or prohibition in Muslim religion then so be it but we know that not all religions would really be having this kind of thing.
When it comes to staking then it is still a sort form of income and you do really believe that those muslims online are really that much off faithful
on stopping even if they do know its against in muslim religion? Not on applying to all of them but several would really be going to the opposite side.
Crypto is anonymous and no one can spot them out in case they do make out those kind of prohibitions.

Yes, I also think same. Staking is Haram in Islam. because it is like getting interest on anything. So I request all Muslim to stay away from it.

Taking things into account, certain believes are really existing and without deeper knowledge with how the system

works may appear that it's  really against from how they percepts things out , but in general it's the interpretations

of every individuals that matters, let those people decide from how they will take this call.

This has a point. If the reason is like this, I think it's understandable and debatable but to say that it's bad because of the reasons of what OP has answered.
I think it's far from the understanding to think that staking isn't for Muslims.

Does that also mean Muslims don't keep fixed deposit accounts at the bank? Fixed deposits also pay interest to owners. Even until lately, savings accounts also paid interest to owners. So, I really don't get this point of you trying to sound this warning. Where is it stated in the Quran that Muslims should not engage in such business. This was the same skepticism that greeted the use of Bitcoin in 2017 by some overzealous Muslim users here. Truth remains that there are worse activities people indulge in than a harmless trading business.

First of all I want to thank you for your efforts who have written at length and straightened the understanding of the law of risking money in Islam. A little input for you, you should give a little variation in your writing, so that it is easy to read and easy on the eyes.

Yes, this has been discussed above, not all bets are haram, but Muslims must respect the rules that have been determined in Islam, even though some people are still violating, but it will be his business with his god.

Anyone with even basic knowledge of how cryptocurrency (especially PoS algorithm) works will disagree with the OP. If staking was equal to interest, then users could just keep their coins in cold storage and forget about it. The interest payments would accumulate automatically. But that is not the case. Staking is more like a reward for keeping the Blockchain alive, and thereby helping to process the transactions.

In Islam it is fine as long as there is no interest because after all, if there is interest, of course the law is haram
What is certain is that if the concept is like gambling, I think that in Islam also does not allow it,
what is clear is that Islam does not prohibit everything so there is no need to be afraid

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.

Bet is gambling while staking in the blockchain is the key to your property to receive another asset that has been produced over time.
Betting can lose all of your money, but depositing profit won't if you do it correctly.
So the deposit does not violate the rules of your friend's religion.

I don't think it's just a bad stake for Muslims. But there are some teachings that say that investing in crypto is something that Muslims should avoid. The proceeds from investments in crypto are not halal.

Interest is a big evil. Remove it and you will have better society. It is making poor poorer and richs richer.

Staking is not like interest, there is a whole different situation about staking and interest from banks. Proof of stake is something that allows you to help people move money around, and you charge money for that, think about it like miners, do miners consider it interest? They do not, plus in order for you to stake you need to keep your PC open if I do not know it wrong, and that means you have to actually "work" for it, you are not getting an interest, you are providing a service and people are paying you for it, that's different from interest.

I still find it idiotic that interest would be bad, it must have been something wrong for those times in a middle east kingdom for sure but in 2021 saying interest is sin would be saying like breathing is sin, interest is everywhere, but this is not interest at all this is a service you charge money and get paid like a normal business.

Let me remind you, holding and trading staking coins are okay. It is only when you out them on stake, it is forbidden.
Just like fiat. If you own fiat, there is nothing wrong with it.
But you are not allowed to lend then for interest.
In Islam giving loan is allowed if it is interest free. In fact Islam encourage to give interstate free loans to people who ask for it.

I see that similar discussions happened in Islamic world and they have a point actually. Staking is too similar to lending and you get interest as a reward. But if you think about mining, staking is like mining but you don't consume energy like mining. So there are controversies about that. Since staking is only here for less than 10 years we can't talk about that for sure. Everybody should do their own research and if they don't feel alright they shouldn't touch staking coins at all.

This will depend on their self belief to, if it can be against their rules but they know in fact it can help them for their situation and living it can be understandable. There are some rules maybe we don't know yet like for minimal interest only or just a very few percent will not be a harm it may also only applicable for them in fiat and not in digital money yet especially if its for living or for investment purposes like having stocks and real estate property.