Shariah Perspective on Free Airdrops

 

Getting free cryptocurrency tokens through airdrops sounds exciting, but are they really halal? In Islamic finance, not all airdrops are as harmless as they seem. Some may be tied to activities like riba (interest) or gambling, and some of them may contradict the terms and conditions of buying and selling in Islam, making them non-compliant with Shariah. Before you accept or use these tokens, it’s important to know how to purify them and stay within halal guidelines. 

What is an Airdrop?

An airdrop in the world of cryptocurrency refers to the free distribution of tokens to individuals as a marketing strategy or as part of a decentralized project’s development. Airdrops are often used to incentivize users to engage with a platform, raise awareness, or distribute governance tokens. Examples include tokens like Grass, NodePay, and Gradient Network.

However, while these tokens may seem attractive, it is important to approach them with caution, particularly in the context of Islamic finance, where the principles of Shariah govern what is permissible (halal) and impermissible (haram).

Types of Airdrop Market Practices

These types of airdrops are typically used by projects within the ecosystem.

1. Marketing Airdrops:
These airdrops are distributed randomly to attract attention and promote new projects. The goal is to increase visibility, build hype, and expand the user base.

2. Reward-Based Airdrops:
Given to loyal users as a form of appreciation, these airdrops often come from well-established projects with a clear vision and roadmap. The purpose is to reward users for their support and build a stronger community.

Why Should We Be Cautious?

Many airdropped tokens, especially those linked to memecoins or risky investments, often have no real purpose or clear use. Some may even be connected to haram activities, such as:

• Riba (usury): Involvement in interest-bearing mechanisms.

• Gharar (excessive uncertainty): like perpetual, futures

• Haram industries: Gambling, alcohol, or other prohibited sectors.

Islamic Maxim: "ما حَرُمَ أخذهُ حَرُمَ إعطاؤهُ"

This key Shariah principle translates to "what is prohibited to take is also prohibited to give." It means that if getting certain wealth or assets is haram, then using, selling, or benefiting from them is also not allowed.

Application to Shariah non-Compliant Airdrops

If an airdrop is linked to haram activities, like gambling or interest-based finance, accepting it goes against Shariah. It’s not just receiving the tokens that’s prohibited: using, trading, or selling them for personal benefit is also not allowed. Any action that continues or supports the haram transaction is considered impermissible in Islam.

What Should You Do If You Receive Shariah non-Compliant Tokens?

Purification Process:

In Islamic finance, purification means cleaning wealth that has been affected by haram elements.

Steps for Purification:

• Identify the status of the token: Check the status of the tokens or coins received.

• If there is a haram element in the token, calculate its value based on the current market price.

• Give the haram portion to charity without expecting any reward or personal benefit. Donate to general causes, such as waqf projects and so on. It is also important to note that it is impermissible to purify the haram income through zakat. Consult a Shariah Advisor: For complex cases, seek guidance from a Shariah scholar.

p/s: Sharlife offers services that can assist in the purification process and provides personalized Shariah consultations to help clarify compliance issues, ensuring your financial dealings align with Islamic principles.