Shariah Review Report for Notcoin (NOT)
Our Halal Crypto Community cares about the ethics and permissions of crypto projects. In this article we discuss popular tap coin named notcoin.
Keep in mind that haqq community operates its own tapping app named haqq tap app
Reviewer: Dr Farrukh Habib
(LinkedIn)
Date: 10 June 2024
Review Validity: 6 Months
Section 1: Main Functions of the Protocol and Token
Protocol Overview
Notcoin (NOT) is a gaming token built on The Open Network (TON) blockchain, primarily used
within a viral Telegram game that quickly gained millions of users. The game is a simple, free-to-
play model where users earn points (Notcoins) by tapping on the screen. These points were
later converted into NOT tokens at a ratio of 1,000:1.
Key features of Notcoin include:
• Tap-to-Earn Mechanism: Users earned Notcoins by tapping on a coin displayed on
their screen within the Telegram game.
• Boosts and Rewards: Users could purchase boosts to enhance their Notcoin earning
capacity and participate in various milestones and referral programs to earn more.
• Community Engagement: The game included elements like Squads, allowing users to
form communities and compete on leaderboards.
The NOT token has also seen significant trading volume and price movements since its launch,
reflecting strong community engagement and interest.
Token Analysis
The NOT token functions as a utility token within the Notcoin ecosystem. Its main purposes are:
• Transaction Medium: Used for in-game purchases and rewards.
• Staking Rewards: Users can stake NOT tokens and earn rewards through campaigns on
exchanges like Binance and OKX.
• Community and Governance: While currently primarily used for transactions, future
functionalities could include governance features.
Section 2: Islamic Legal Analysis of the Protocol and Token
Shariah Nature of the Platform/Protocol
Considering from the micro-level and technical aspect, it seems that the current game of
tapping is like the reward of attention and time spent on the game itself. Moreover, further
bonuses and boosts are aimed to incentivize community building. However, looking from a macro-level, it is difficult to see the benefits of the game and token’s
utility from the user perspective. Currently, there is uncertainty regarding its future aspects as
well. Furthermore, the primary focus of Notcoin on gaming might raise a few potential concerns
from a Shariah point of view:
• Music and Character Depictions: Many games, including those on Telegram, often
feature music and character depictions that may not align with Islamic guidelines on
modesty and content. It is a potential issue which can’t be confirmed at this moment.
• Potential for Gambling Elements: Games involving reward mechanisms and in-game
purchases can sometimes introduce elements akin to gambling, which is prohibited in
Islam. This is also a potential concern.
• Uncertain Benefits: The tap-to-earn mechanism and other gaming rewards can involve
excessive uncertainty (Gharar), as the benefits derived are not always clear and
tangible.
Islamic Legal Characterization of the Coin/Token
The NOT token is a utility token designed for use within the Notcoin gaming ecosystem.
However, its Shariah compliance is questioned based on the following factors:
• Nature of Transactions: If the gaming activities facilitated by the NOT token involve
prohibited elements such as gambling or unethical content, the token itself becomes
problematic.
• Valuable Property (Mal Mutaqawwam): For the NOT token to be considered Shariah-
compliant, it must be associated with permissible (Halal) activities and have a clear and
legitimate economic benefit.
Examination of Prohibited Elements
1. Interest (Usury): There is no indication that the Notcoin protocol or the NOT token
involves interest-based transactions.
2. Gambling or Lottery (Qimar or Maysir): Though there is no clear evidence of gambling
or lottery, the tap-to-earn and boost mechanisms can potentially be used to introduce
such elements in the ecosystem, depending on how they are structured and used.
3. Excessive Uncertainty (Gharar): The potential uncertainty in the benefits derived from
gaming activities and the speculative nature of in-game purchases raise concerns about
Gharar.
4. Other Prohibited Elements: The nature of gaming content, including music, story,
theme, influence/impact, and character depictions, often involves elements prohibited
in Islam.
Section 3: Shariah Compliance Verdict and Guidance
Verdict
Based on the analysis, the current utility of Notcoin (NOT) and its associated gaming activities
may be considered Shariah compliant, however, the future introduction of other games might
exhibit elements that are prohibited in Shariah. The primary focus on gaming, which often includes content and mechanisms contrary to Islamic principles, makes the token and the
platform objectionable from the Shariah point of view.
Guidance
Users are advised to avoid participating in the Notcoin platform and refrain from buying, selling,
investing, or holding NOT tokens to avoid any potential Shariah non-compliance in the future.
Disclaimer
This review focuses solely on the overall Shariah compliance of the Notcoin protocol and its
associated NOT token. It does not extend to the Shariah implications of specific products,
utilities, or services offered by the protocol unless explicitly analyzed.
Sources (Accessed on: 10 June 2024):
• https://coinmarketcap.com/currencies/notcoin/
• https://crypto.news/what-is-notcoin/
• https://zerocap.com/insights/snippets/what-is-notcoin-not/
• https://www.kucoin.com/learn/crypto/what-is-notcoin-not-gamefi-star-in-ton-
ecosystem
• https://atas.net/crypto-trading-en/all-about-notcoin/
