Islamic Coin (ISLM) Islamic Coin (ISLM) is the first officially halal digital currency, the internal currency of the Haqq blockchain. The halal nature of the currency is ensured, among other things, by excluding access through the official applications of the network to any projects that violate Shariah rules. This is provided through a double verification mechanism when an additional key for project approval is held by the Shariah Council of the project and it is impossible to launch a project in the HAQQ blockchain without its approval. Thus, every religious person, using ISLM and HAQQ, can be sure that he does not participate in prohibited activities and does not support such activities, including indirectly.
The most important mechanism of Islamic Coin is the creation of the DAO Evergreen Fund, aimed at supporting Islamic charity and the Islamic Internet. In fact, this mechanism is the collection of zakat. When issuing ISLM, 10% of the amount is automatically sent to the fund, which ensures its constant replenishment.
When paying Zakat in Islamic Coin to the wallet of his mosque, a Muslim provides additional benefits for the Ummah. Increasing the circulation of ISLM increases the value of the digital currency and leads to the replenishment of the DAO Evergreen Fund. Thus, by making a donation to Islamic Coin in the amount equivalent to 1 dirham, the donator ensures the appearance of charity in the amount exceeding 1 dirham, directed to the needs of the Ummah. Thus, the Islamic Coin is the most useful way of collecting zakat from the point of view of the final size of charity.
The use of DAO Evergreen Fund funds is associated with the Shariah Board, which has the right to veto projects approved by the community, which excludes its use contrary to the stated and documented goals. Since blockchain is a universal way to record information about transactions, HAQQ is an ideal environment for placing and handling sukuk. In this case, transparency of their treatment is ensured, and unfair use of sukuk mechanisms for financing activities contrary to Shariah is excluded.
At the same time, when issuing sukuk under a smart contract, payments in Islamic Coin and payments in other digital currencies using the erc20 protocol can be used.
Smart contracts on HAQQ have all the technical capabilities for the parties to conclude buy-in and buy-in transactions. At the same time, a non-interchangeable token (NFT) can be issued in relation to an asset that is the subject of a transaction in the real world, which is circulated in the system until the obligations under the transaction are fulfilled.
The conclusion of a transaction on the HAQQ platform presupposes the consent of the parties to the requirements of Shariah, which allows the affected party to protect its interests in the event of an unfair attempt to recover the riba. This becomes especially important in the case of issuing a loan between two participants directly (peer-to-peer). The use of HAQQ guarantees compliance with the riba ban in such platforms and protects the borrower from the unfair actions of the lender.
If the subject of the transaction is correlated on the HAQQ platform with NFT, it is possible to conclude smart contracts that automatically distribute profits between the parties under the mudarab or musharak agreement.
According to the mechanism described above, it is technically possible to implement and account for obligations under the Ijari agreement. However, in order to give such accounting legal consequences, it is necessary to obtain additional approval from the authorities of the country where the real estate is located.
For all the reasons mentioned above, it can be said that HAQQ is the optimal environment for the issuance, accounting, and circulation of Islamic finance instruments, guaranteeing the participants of legal relations the purity of transactions from the point of view of Shariah and excluding the support of projects contrary to Islam and business initiatives by such projects.