The Utility and Value Proposition of the ISLM Token

In DeFi, native tokens serve as an emblematic representation of the ideals, functionality, and ethos of their respective ecosystems. These tokens, far from being mere speculative instruments, hold a significance that often encapsulates the very mission of the blockchain projects they represent. The ISLM token, central to the HAQQ Network, stands as a testament to this notion.

Through the ISLM token, HAQQ endeavors to pave a path where technological progress meets timeless values. In this piece, we'll unravel the multifaceted role of the ISLM token within the HAQQ, detailing its utility, value, and unique proposition in bridging age-old financial principles with today's decentralized digital landscape.

For those who have already engaged with our previous blog post, Understanding the Tokenomics of the ISLM Token, the intricate design and economic principles underlying the ISLM token are well-understood. If this is your maiden voyage into the realm of the ISLM token, we strongly recommend you commence your journey by reading that foundational post to gain a comprehensive understanding of its economic design and importance.

Use Cases

Shariah Compliance

Islamic Coin (ISLM) emerges as a beacon of Shariah-compliant digital currency, specifically engineered to add value to the global Muslim community. It's rooted in its dedicated Islamic blockchain, HAQQ, a name symbolizing "truth", which meticulously abides by the Islamic perspectives and traditions on finance as highlighted in the Quran. The Quranic mention of gold and silver as indicators of worldly pleasures establishes a foundational basis, historically recognizing these metals as forms of currency. This traditional backdrop is what ISLM leverages to craft a digital counterpart that adheres to Islamic finance principles. The transition from traditional to digital, while maintaining Shariah compliance, encapsulates a significant stride towards modernizing Islamic finance.

The unique aspect of ISLM lies in the formal recognition of its Shariah compliance through a Fatwa, an authoritative legal opinion in Islamic law. This Fatwa, exclusively issued within the Haqq blockchain environment, stands as a monumental endorsement of ISLM's adherence to Islamic financial principles.

Financial Services

Islamic Coin has carved a niche in the domain of financial services by leveraging the native blockchain, HAQQ, to provide a range of financial activities that are in harmony with Islamic financial principles. One of the core financial services offered is staking, which forms a crucial aspect of the ISLM ecosystem. Staking in ISLM's network involves locking up ISLM tokens in a smart contract to partake in the network’s governance and earn rewards. This process aligns with the Proof-of-Stake (PoS) consensus algorithm, where the locked-up amount acts as collateral while earning returns over time. The essence of staking in ISLM's ecosystem is to validate transactions, secure the network, and implement governance decisions, which, in return, yields staking rewards to the participants. For a more comprehensive understanding of staking and its intricacies within the ISLM ecosystem, it is advisable to visit the first tokenomics blog of this series which elucidates the concept in great detail.

Beyond staking, ISLM tokens serve as a versatile financial asset within HAQQ, facilitating various financial activities including trading and lending, primarily on platforms that support the ISLM network. Compatibility of HAQQ and Islamic Coin with major blockchain networks like Ethereum, EVMOS, Cronos, Osmosis, and others operating on the Cosmos SDK broadens the scope and accessibility of ISLM for various financial operations. However, it's crucial to note that ISLM strictly adheres to Islamic financial laws. Thus, it's incompatible with platforms engaging in activities contrary to Islamic financial principles, such as Riba (interest) or Gharar (excessive uncertainty).

The integration with Yieldmos, a trailblazing DeFi yield generation protocol, emboldens the HAQQ ecosystem, enabling users to garner auto-compounded yields while steadfastly adhering to Islamic finance principles. Yieldmos, with its ethos of transparency and non-custodial financial management, dovetails with the Islamic doctrines of asset-backed financing and risk minimization upheld by HAQQ. This synergy doesn't just bode well for yield maximization but resonates with the broader Islamic financial principles, making ISLM tokens a potent tool for intelligent and active financial growth.

Transitioning from yield optimization to enhancing decentralized trading functionalities, the partnership with P2P.org is a leap towards building an advanced Graph service. This collaboration is instrumental in augmenting the SushiSwap experience on HAQQ and fortifying the decentralized trading infrastructure. It's a stride towards fostering transparency, security, and equitable access to financial systems, embodying blockchain's core tenets. Moreover, this partnership catalyzes the development of innovative decentralized applications (dApps), propelling the HAQQ ecosystem towards a fertile ground for ethical financial solutions.

Further broadening the horizons of Shariah-compliant fintech innovation, the alliance with Brighty app is a gateway into the European Islamic Finance market. Brighty, with its forte in amalgamating traditional finance with cryptocurrency, now embarks on offering accounts in Islamic Coin and introducing staking mechanics. This partnership is a significant stride, not just in expanding Brighty's service spectrum but in leveraging its entrenched infrastructure to amplify the reach of decentralized finance (DeFi) in the European market. Through this alliance, Brighty will offer Islamic Coin accounts and staking mechanisms, enabling transactions in Shariah-compliant crypto tokens like USDT or USDC. The partnership signifies a robust step towards interlinking Islamic Finance principles with modern fintech innovations in Europe. Brighty's established market presence amplifies HAQQ's reach, making Shariah-compliant financial solutions more accessible. This alliance doesn't just expand Brighty's service offerings but also advances HAQQ's mission of fostering ethical, inclusive, decentralized finance.

Looking ahead, HAQQ is proud to have inked a partnership with Pyypl. Incorporating Pyypl's partnership within the financial ecosystem of HAQQ can be pivotal due to Pyypl's user-friendly and accessible financial services. With Pyypl, being a fintech leader in MENA region, we are bringing HAQQ's low-cost blockchain services to Pyypl's one million+ users. This alliance will foster inclusivity and ease of transactions, aligning with HAQQ's ethos of ethical finance.

Governance

Evergreen DAO is the cornerstone of governance within the HAQQ, channeling funds towards initiatives beneficial for the Muslim community and the network at large. Its governance structure is delineated by the HAQQ Community and HAQQ Shariah Board, ensuring every spending proposal aligns with Islamic finance principles.

The governance journey begins with the submission of spending proposals by any ISLM staker, showcasing the token's utility in initiating community-driven initiatives. Proposals transition through a Deposit Period, where a deposit in ISLM tokens is required, followed by a Voting Period, where ISLM stakers cast their votes. The threshold for a proposal to be accepted is a minimum of 50% Yes votes, showcasing a democratic process powered by ISLM tokens. Upon crossing the Voting Period, proposals enter the Shariah Approval Period for a meticulous review by the HAQQ Shariah Board, ensuring Shariah compliance. The outcome of this review is crucial for the execution of proposals, demonstrating a unique blend of decentralized community engagement and ethical oversight via ISLM tokens.

The deposit handling is a distinct feature where deposits from finalized proposals are either refunded or transferred to Evergreen DAO based on the proposal's fate. This process showcases the ethical utility of ISLM tokens, where they act as a means to both initiate and financially back proposals.

ISLM tokens are instrumental in fueling a governance model that is both inclusive and Shariah-compliant. They serve as a gateway for community members to propose, back, and vote on initiatives, ensuring an ethical and community-driven governance process within the HAQQ Network. For more information on the governance, please visit, download, and read details on our whitepaper.

Integrations and Partnerships

The partnership between HAQQ and Axelar aims to broaden the scope of cross-chain interoperability, enhancing the adoption and liquidity of ISLM across various blockchain networks. This integration fosters seamless cross-chain communication, extending ISLM's reach beyond the HAQQ ecosystem. Read more about the HAQQ x Axelar partnership.

Transitioning to the realm of sustainability, HAQQ's alliance with Thea Carbon epitomizes its resolve for an eco-conscious blockchain evolution. Through "Green mode," Islamic Coin wallet holders can offset their carbon footprint, promoting a greener blockchain ecosystem. This partnership aligns with international sustainability standards and introduces rewards for climate-positive actions within HAQQ's loyalty program, setting a precedent for sustainability in blockchain. Read more about the HAQQ x Thea Carbon partnership.

Venturing into the sphere of user accessibility, the partnership with Nefta heralds a new era of user integration into HAQQ's blockchain framework, facilitating a smoother assimilation of decentralized mechanisms in Ethical Finance. This partnership facilitates the transition of traditional web2 loyalty programs to web3, notably enabling the seamless integration of Holiday Swap's loyalty token system. The collaboration aims to promote inclusive, ethical finance, democratizing blockchain technology access and fostering a more sustainable financial ecosystem. Read more about the HAQQ x Nefta partnership.

We’re Just Getting Started

Indeed, the journey we're on is nothing short of transformative. While we've charted a course that has led us through significant partnerships, governance innovations, and technological advancements, we're merely scratching the surface of what the ISLM token and the HAQQ Network aim to achieve. As we look toward the future, our roadmap for Q4 2023 and Q1 2024 is laden with milestones that promise to revolutionize the utility of the ISLM token and its intrinsic value within the broader financial landscape.

Minting this quarter is already well underway. This quarter will also mark the launch of our decentralized identity solutions and the Shariah Oracle on the testnet, which will serve as real-time compliance checkers for all transactions, amplifying the token's Shariah compliance features. NFT support in the HAQQ Wallet and the inception of a Shariah Mobile Apps Marketplace will diversify the range of digital assets that can be managed within our ecosystem. Adding to this, Keystone hardware wallet support will introduce a fortified layer of security, making the ISLM token a safer digital asset. Furthermore, the token is slated for integration as a payment method with up to 20 major partners in the MENA region, such as Emaar and Etihad, and the launch of a Swiss payment card backed by Islamic Coin is on the horizon. These integrations will herald the ISLM token's entry into daily transactions, extending its utility beyond mere investment or staking. The quarter will end with ISLM becoming available as a payment method in hundreds of merchants across the MENA region, courtesy of our integration with crypto-fiat processing services.

Transitioning to Q1 2024, the Evergreen DAO will be fully implemented, enhancing our governance model to be even more community-centric. The Shariah Oracle will transition from the testnet to the mainnet, ensuring real-time Shariah compliance across all transactions within the HAQQ Wallet. In collaboration with top UAE banks, a gold-pegged stable coin will be introduced, presenting a less volatile asset that aligns perfectly with Islamic financial principles.

To bolster these developments, our recent partnerships in medical care, travel, wellness, and immigration services have laid down the first stones on a path toward global adoption. These partnerships are not merely strategic alliances; they are affirmations of the ISLM token's potential to be deeply integrated into various sectors, touching the lives of millions globally. Collaborations with entities like MBM Specialty Medical Center and 24 Seven Government Transactions Center, among others, aim to explore groundbreaking capabilities that could redefine customer experiences in essential service sectors.

We are just getting started, and the road ahead is long but promising. For those who wish to delve deeper into these exciting prospects, we recommend keeping an eye on our whitepaper and follow us on X. Thank you for embarking on this journey with us; your active participation and feedback are not just welcomed but integral to our collective success.

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