For exchange tokens that act as the main token for trading purposes on the specific exchange, there are some tricky cases that need to be clarified. First, the token itself represents the ecosystem that gains profit from all transactions on the exchange which may include the Non-Shariah project Token. Second, the ecosystem benefits from derivatives contracts that clearly contrast with Shariah's ruling. We assume the same methodology of Stock Shariah screening that enacts the prohibition of stockbroking activities is applied in the same case. However, the usage of Exchange Token is commonly used to trade NFT or any other coin, thus we recommend not holding Exchange Token for more than 30 days to avoid being involved in their ecosystem.
| Category | Details | Status |
|---|---|---|
| Legitimacy | Not regulated by any countries or regulatory bodies.. The project has a well-defined path and a legitimate blockchain product, while the token/coin has a fundamental underlying value that qualifies it as a âMalâ or asset | Passed |
| Project | The project is an exchange platform that allows users to trade by orderbook. However, there are many prohibited features such as derivatives, leverage, and Non-Halal Token offered in the platform that trigger Shariah Issues, considering the platform benefit a lot through brokerage fees. | Failed |
| Financials | The token is not backed by any equity, thus there is no financial screening on this token. | Passed |
| Token | The GNS utility token is the backbone of an ecosystem that provides liquidity efficiency and trading benefits to its users. The token has been net deflationary and supports the liquidity of the DAI vault by providing rewards for NFT bots and affiliates. Additionally, it can be burned to ensure sufficient over-collateralization of the DAI vault for the benefit of DAI vault stakers. | Grey |
| Staking Method | Proof of stake method mechanism by this protocol complies with Shariah's rulings. Staking will be rewarded by transaction fees | Passed |
Read the source document and verify project fundamentals.