The Lossless protocol provides an additional layer of security to detect, freeze, and recover fraudulent transactions, while its projects and features appear to be compliant with Shariah law. Therefore, Lossless can be classified as Shariah-compliant.
| Category | Details | Status |
|---|---|---|
| Legitimacy | Not regulated in any countries or regulatory bodies. The project has a genuine product on the blockchain, while the token/coin has a fundamental underlying value that allows it to be categorized as âMalâ. | Passed |
| Project | The lossless protocol adds an extra layer of security to blockchain to detect, freeze, and recover fraudulent transactions. Finders and Stakers help to identify fraudulent transactions, with stakers increasing visibility for credible reports. The Lossless Decision-Making Body evaluates frozen transactions and rewards Finders and Stakers for verified discoveries. Other Lossless projects include Vault and Treasury protection, Token Minter, and Aegis, which offer threat monitoring and smart contract defense capabilities. Token Minter enables project owners to create Lossless-protected tokens on various supported chains. None of these projects seems to contradict with Shariah. | Passed |
| Financials | The token is not backed by any equity, thus there is no financial screening on this token. | Passed |
| Token | The Lossless protocol utilizes LSS as both a utility token and for governance purposes. Token holders can participate in the hack spotting process and earn rewards. By holding LSS tokens, users can stake and freeze fraudulent transactions that will be investigated to determine if they were hacks. Other uses of LSS include Finders Staking, Finders Fees, LSS Token Governance, Promotion and Referral programs, and Early Access and Insights. | Passed |
| Staking Method | Community members can submit reports by paying a reporting fee in LSS tokens to freeze an address for 24 hours, signaling potential fraudulent activity. Additional tokens can be staked to indicate a wider belief that a hack occurred, without generating a new report. Finders and Stakers are rewarded for verified discoveries, while non-fraudulent transactions are unfrozen and sent to the intended recipient. | Passed |
Read the source document and verify project fundamentals.