Proposal: NEAR Halal Pool — Islamic‑Compliant Staking Model

Development Proposals
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0. Personal Note

As an active member of the NEAR community, I believe we can broaden our platform’s reach by developing a staking pool that not only meets technical standards but also aligns with Islamic finance values. Below is my proposal to introduce “NEAR Halal Pool.”

1. Summary

I propose “NEAR Halal Pool,” a Sharia‑compliant staking framework. Instead of the usual fixed-yield approach, participants—both delegators and validators—share in actual profits and losses. This model is designed to earn trust and attract liquidity from Muslim investors seeking transparent, ethically governed opportunities.

2. Motivation

  • Market Opportunity: With roughly 1.8 billion Muslims worldwide, there is a clear demand for halal-friendly DeFi services.
  • Compliance Need: Traditional fixed-return staking can resemble riba (usury), discouraging observant users.
  • Competitive Edge: By offering a certified halal pool, NEAR can differentiate itself and demonstrate genuine commitment to inclusive innovation.

3. Specification

3.1 Profit‑and‑Loss Sharing

  • Rewards stem from real network revenue—transaction fees and block rewards—and are split proportionally among delegators and validators.
  • Any slashing penalties or operational expenses are deducted from total rewards before distribution.

3.2 Reserve Fund (Takaful)

  • We allocate 1–2% of each reward into a communal reserve to cover emergency losses and technical contingencies.
  • The fund’s balance and withdrawals remain transparent on-chain for all to verify.

3.3 Governance & Sharia Board

  • Establish an independent Sharia Supervisory Board for annual contract reviews.
  • Issue a yearly Sharia Compliance Certificate.
  • Enable NEAR token holders to vote on key parameters like reserve rate and board membership through a governance module.

3.4 Transparency & Reporting

  • Provide a live dashboard displaying pool size, earned rewards, reserve balance, and any slashing incidents.
  • Publish quarterly on‑chain reports detailing financial statements and audit findings.

4. Implementation Plan

  1. Prototype (Q3 2025): Develop smart contracts and basic reserve logic.
  2. Internal Review (Q4 2025): Conduct performance tests, security audits, and Sharia Board assessment.
  3. Pilot Launch (Q1 2026): Invite a small group of volunteer delegators to test and provide feedback.
  4. Public Rollout (Q2 2026): Full launch with NEAR Explorer integration and wallet support.

5. Security & Risk Management

  • Hire reputable third-party firms for comprehensive security audits.
  • Define clear slashing fallback procedures and disaster recovery plans.
  • Use multisig controls for any reserve fund operations to ensure accountability.

6. Sharia Compliance

  • No promised fixed returns—participants share real profit and loss.
  • Strict ban on any haram activities.
  • Annual review by certified Sharia scholars with public publication of their reports.
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Tons of practicing muslims I know use crypto without any issue.
Use NEAR staking even. I can’t see any issues (least none that have been explained properly including this post).

What I see is, is risk. By having a different staking model to other NEAR staking you open the door to fraud because you’re trying to maintain two version of the one function.

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This is the first time andrewsaul has posted — let’s welcome them to our community!

As a muslim i have some problems with staking and u are new so u are not trusted

thx

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Hi @ahmed11122333

I’m not very well versed with Islamic Finance but curious to know if there are other protocols who’ve tried to comply with this (for reference).

I somewhat believe this might be better suited as a DeFi Dapp rather than it being enshrined at the protocol level.

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hardly new. been on NEAR for years. Just a brief look at my on chain address could tell you that.

I feel this is similar to the Islamic blockchain which around a while back. that was a scam wrapped up in the clothes of some official religious product.

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