The founders of the Ethereum-compatible Haqq blockchain will launch a new Sharia-compliant cryptocurrency called Islamic Coin (ISLM).) next month.
The new cryptocurrency and blockchain will target the Muslim population after religious leaders approved the project in June 2022.
Haqq can host any Sharia-compliant Ethereum DApp
The Advisory Board of Haq Blockchain will only allow Sharia-compliant applications. These do not include gambling, speculation, short selling, debt sales and receivables.
The coin received a fatwa, or religious green light, in June 2022. Authorities liked the blockchain’s PoS consensus approach, decentralized nature, and commitment to philanthropy. The currency is said to be the first digital asset that followed the rules of the Quran. The Islamic currency got 50% of the private sales from non-Muslims.
The Haq program will limit the supply of ISLM to 100 billion tokens and will reduce the token emission rate by 5% every two years.
The non-profit Evergreen DAO will receive 10% of every Islamic coin mined to fund community projects. A Sharia Board will decide which projects Evergreen will invest in.
Between 1% and 5% of the tokens will be transferred to the block viewer and delegates. The remaining blockchain token will be sent to validators and delegates based on the number of coins accumulated.
Between the fourth quarter of 2022 and the fourth quarter of 2023, the project will to merge With 20 payment companies in the Middle East and North Africa (MENA).
Is ISLM overrated?
react on Imminent release date It was mostly positive, with many Twitter followers asking how to get the coin.
others Requested Whether the Islamic currency is different or trying to attract Muslims in the Islamic language.
Last year, the project’s co-founder, Mohammed Al Kaf Al Hashimi, told BeInCrypto that if 3-4% of the Muslim population embraced ISLM, the cryptocurrency would become a “Bitcoin-scale asset.” A bold note considering that Ethereum boasts a market cap of over $200 billion.
However, according to Arabian BusinessSharia-compliant financing can support the growth of the Islamic finance market to $3.7 trillion by 2024.
Islamic banks make money by sharing profits and losses with depositors and granting loans through unique sales and lease contracts. For example, in a home loan transaction, the bank leases the mutually owned property to the customer. The customer takes the house after paying the bank’s share.
Conventional banks make money by charging borrowers a higher rate of interest than they pay depositors and charging fees for late payments. Sharia-compliant banking incentivizes payment by refunding a percentage of the funds to contribute to ethical reasons.
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