Islamic Coin (ISLM) is an emerging Sharia-compliant cryptocurrency. The founders of the coin made a wild claim. Their Muslim-focused asset could expand like Bitcoin (BTC) to reach the equivalent of more than $1 trillion.
“We know adoption will happen gradually,” Mohammed Alkaff Alhashmi, co-founder of Islamic Coin, told BeInCrypto. “However, if only 3-4% of the Muslim online community hold an Islamic coin, it will become a bitcoin-scale crypto asset. It will generate a trillion dollars for its holders, and the Evergreen DAO will generate $100 billion,” he added.
The language sounds incredibly bombastic, if not unbelievable. This means that ISLM has not yet penetrated the market to the level of, say, Ethereum. ETH is the second largest crypto asset with a market capitalization of $157 billion. Not to mention Bitcoin.
It is not even listed on major stock exchanges yet. But Alhashmi is confident in the product his company is building. He says they are playing the long game as they try to tap into the $2.88 trillion Islamic finance sector.
Islamic Coin: What is it?
According to Alhashmi, the Islamic coin is a native token of Haqq, a proof-of-stake (PoS) blockchain that runs on Cosmos via the EVMOS protocol. Translated into Arabic as "truth", Haqq "strictly adheres to Islamic views and traditions in the field of finance".
The idea behind the ISLM coin was to provide global Muslim believers with a tool through which they could engage in the digital economy. Described as a Halal asset, the Islamic coin is said to be compliant with Sharia law.
This means that it is in accordance with the basic principles that govern Islamic life and the extended law on matters of morality and modesty. Alhashmi said the Islamic coin was specifically designed to facilitate philanthropic events.
"Islam is the world's second largest religion with almost 2 billion followers: that's roughly a quarter of the world's population," Alhashmi, a computer science engineer, told BeInCrypto.
"Muslims make up the majority of the population in 47 countries, we designed the Islamic coin to have a lasting and powerful impact on one of the largest communities in the world."
Islamic Coin was launched on the Haqq blockchain in May. In June, the token received a religious declaration or "Fatwa" from Muslim leaders. This confirmed that he met a religious standard that frowned upon problems such as gambling. Muslims were thus free to interact with the coin.
A month later, Islamic Coin raised $200 million in a private sale. This is considered a remarkable performance in a bear market. The token is overseen by an executive board of leading Islamic bankers, software engineers and scholars within the Swiss-based non-profit Haqq Association.
And even. It should be considered that people in the Middle East are loosening their ties to Islam, especially in countries like Iran. Young people in particular do not identify with strict orthodoxy as they used to.
Tokenomics of Islamic Coins
Source: Islamic Coin Workflow
According to the white paper, the supply of Islamic Coin is limited to 100 billion tokens. Every two years (called an era), the coin's emission rate will decrease by 5%. Emissions will stop in 100 years from the first block of the first era, they say. 20 billion tokens were minted in the genesis block.
Mohammed Alkaff Alhashmi said that ISLM is used for payments, network management, betting, and to cover transaction costs over the network. "One of ISLM's most important goals is to promote progress and charitable work," he said.
Every time new coins are minted, 10% of the amount issued goes to Evergreen DAO, a non-profit organization "focused on long-term sustainability and community impact". The coins are deposited into the DAO "to be invested in Islamic internet projects or given to Islamic charities".
Between 1% and 5% goes to the proponent of the bloc and its delegates. The remainder is distributed proportionally between all bound validators and their delegates. As a proof asset, Islamic Coin uses a bound validator delegate system.
These are rewarded in proportion to the amount of ISLM tokens they have staked to help secure the network and process transactions. Rewards are split between delegates minus the validator's own commission.
ISLM holders can lock their tokens by attaching them to validators in a process known as "staking". By pooling coins, ISLM holders delegate voting rights to validators and become delegates. This gives them the right to receive rewards and participate in governance.
Islamic coin
ISLM's founders say the coin will compete with BTC
Bitcoin-style scaling
Alhashmi, co-founder of Islamic Coin, claimed that the crypto-asset "is the first digital money that complies with Sharia law and can be used by followers of Islam without any restrictions."
He sees a future where 3 to 4% of the current billion Muslim internet users will adopt an Islamic currency. The token would be able to scale like Bitcoin (BTC), the first and largest cryptocurrency.
At 3% adoption, the Islamic coin would be worth $720 billion in capitalization. The value would skyrocket to $4.2 trillion with a 20% adoption rate, which is four times the current total global cryptocurrency market cap.
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