The invention of blockchain and its most popular application, cryptocurrency has opened the world to a new era of possibilities — one where financial value can be safely transferred across continents instantly or near-instantly. Through blockchain technology, society can now access financial services previously inaccessible to a larger percentage of the global population.
As internet penetration deepens globally, and as the knowledge of blockchain and cryptocurrency spreads further, newer types of applications and use cases will continue to emerge, helping to shape the future of mankind by decentralizing power and resources to everyone.
While the world celebrates the many innovations of crypto, as a circumstance-changing technology, the Muslim world believes the technology can also be applied to their financial system. Everyone wants a fast, safe and secure way of sending value from point A to point B, but what separates the modern financial system from the Islamic system is that the former’s banks make money from charging interest on loans, whereas, the Islamic system does not. These two (safety + Shariah compliance) are defining factors to drive the creation of an Islamic cryptocurrency, separate from government control and influence thus empowering billions of Muslim faithful all over the world, by helping them to tap into the growing financial system and services previously inaccessible. This article explores the Shariah-compliant cryptocurrency — Islamic Coin.
What is Islamic Coin?
The Islamic Coin (ISLM) is the native asset of the Haqq Network and is used for payments, governance, gas fee, and staking.
What is the Haqq Network?
The Haqq Network is a Proof of Stake blockchain that issues the Islamic Coin, the native crypto asset of the network. it claims to be fast, trusted, and compatible with thousands of applications on the Ethereum network. It’s also IBC (Interblockchain communication protocol) compatible. According to Haqq, the network has a high throughput with fast finality which makes it suitable for applications beyond finance.
Before the Network went live the team revealed minting of new tokens would be temporarily disabled and then the network will be operated by the Islamic Coin core team. According to the team, this was to enable them to implement the testing of what is known as Century Coinomics (a tokenomic system that takes 100 years to complete emissions), and let the community stake and run validating nodes on the network. To achieve this, a public testnet will be launched with a PoS consensus mechanism and minting capabilities. Upon successful testnet review and testing, community-chosen validators can join the network when it is live on the mainnet and earn rewards from network validation.
Haqq Network Architecture / Ecosystem
- The Haqq network is Ethereum compatible which means Ethereum developers or of EVM compatible networks can easily port products to Haqq without having to rewrite their codes.
- The InterBlockchain Communication Protocol compatibility allows Haqq to communicate with similar compatible networks and exchange value.
- High throughput and instant finality make the network suitable for high-speed applications such as social media, games, trading markets, etc.
- Century Coinomics — a 100 years token emission period token design with an emission reduction rate every two years.
- The Evergreen DAO — network participants governed DAO funded by ISLM token emissions and a part of network fees with the core purpose of supporting innovative projects for the global Islamic community.
- Builders Incentive — network mechanic that encourages or incentivizes builders to develop network value-added projects.
- The IC Network: this is the developer of the Shariah-compliant Haqq Blockchain. IC Network is a privately financed tech firm founded by Andrey Kuznetsov, who’s also the founder of Islamic Coin.
- Islamic Coin: this is the native crypto asset of the Haqq Blockchain that can be used for payments, gas fees, and staking.
- Haqq Association: this is a swiss-based nonprofit association funded by donations. The association’s goal is to promote community-driven technologies to the world and to supervise further development of Haqq Blockchain to ensure compliance with Islamic finance principles.
Block production / Tokenomics
Until the 100 billion ISLM coin has been fully minted, at every block produced, new coins will be minted and gas fees collected from users. This will be distributed between network validators, delegators, and Evergreen DAO.
The distribution is as follows:
- 10% to Evergreen DAO
- 1% to 5% to block producers and delegators
- The remainder is distributed to bonded validators, and their delegates proportionately.
The Islamic Coin (ISLM) has a maximum supply of 100 billion tokens but this token will be emitted over a period of 100 years however the rate of emission will reduce every two years by 5% till the 100 billion tokens are fully minted. This period is known as an Era.
These are the percentage of ISLM that will be minted during the Eras.
- First era: 4.33%
- Second era: 4.12%,
- The following Era will be minted less by 5% with the 9th Era seeing 2.87%.
According to the team, over 50% of the total supply will be minted from the mainnet launch by the end of the 9th Era. This includes the initial supply of 20 billion ISLM Coin which.
The 20 billion ISLM will be minted in the genesis block and will be distributed on the day of network launch and distributed in the following proportion and vested:
- 2 billion – Evergreen Foundation
- 5.5 billion – Partners: boards, initial supporters, promoters, and market makers. Once distributed to holders, ISLM will be vested and released every 30 days at a proportion of 1/24th.
- 4 billion – Initial Private Sale. The 4 billion ISLM will be sold to qualified private investors. Once distributed to holders, ISLM will be vested and released every 30 days at a proportion of 1/24th.
- 5.5 billion – for business reserve & ecosystem development fund. These coins will be used for public distributions, operational costs, business development, grants, and other ecosystem-focused activities.
- 3 billion – Founders Reward. The token will be vested in a smart contract on launch and become claimable every 30 days at a portion of 1/24th. However, a 1/24th will become available immediately after the smart contract deposit.
According to the team, coins allocated to the Evergreen DAO will be locked until it is fully developed, tested, and deployed on the mainnet.
The full 100% (100 billion ISLM) will be minted at the end of the 50th Era, no more ISLM will be minted after that.
Wallets
These are the wallets currently supporting the Haqq network. These are hardware wallets (Ledger, Trezor), browser-based wallets (MetaMask), Keplr, and the Haqq Mobile App wallets.
To connect to the Haqq network, these are the details:
Network Name: Haqq network
RPC: https://rpc.eth.haqq.network
Chain ID: 11235
Currency Symbol: ISLM
Block Explorer URL: https://explorer.haqq.network
Islamic coin has recently launched its noncustodial Mobile App wallet for the Haqq ecosystem.
ISLM Staking
Staking involves locking up coins to earn rewards. It also entails locking up tokens and giving the authority the tokens have to another entity that utilizes it to protect and enable a proof of stake network function, and by doing so, earn rewards. ISLM holders in the Haqq can stake their tokens to earn more ISLM by delegating their voting power to validators maintaining the network. These holders in return earn ISLM rewards. They can also lose their stakes and rewards if the validator becomes a rogue validator. To prevent the full loss, Haqq recommends holders delegate to see Validators for optimum returns.
Grants / Partnerships
One of the ways to kick-start a network and drive developer attention and focus is to aside from having a robust system initiate a developer incentive program. Haqq network is offering grants to innovative ideas that are Shariah-compliant and in line with the laws of Islam. Interested developers or builders can begin to start applying.
Haqq network currently has two partners listed on its website at the time of publication. They are the United Nations Sustainable Development Goals, and World Green Growth Organization. It has also recently partnered with Fambras, a Brazil-based Muslim Association. To partner, Haqq demands all proposals to be fully Shariah-compliant and infused with ethical finance. You can apply here.
Team / Advisory & Executive Board
The team, Advisory, and Executive board is made up of Royals from the Abu Dhabi Ruling family, Dubai Ruling family, and professional fields such as Islamic banking and insurance, Computer science, VC, Telecommunications, Academia, etc.
Founders
Andrey Kuznetsov — the founder of IC Network, developer of Haqq network. Andrey Kuznetsov is a serial entrepreneur and engineer with a focus on financial technology, cybersecurity, and network communication solutions.
Alex Malkov — with more than 5 years of experience I have legal consulting for leading blockchain and fintech platforms, Alex has advised firms like Aave and Nebula.
Mohammed AlKaff AlHashmi — Mohammed has 18+ years of experience as a computer science engineer. His focus is on Industry 4.0, Artificial Intelligence, machine learning, Industrial automation, and IOTs.
Hussein Mohammed Al Meeza — An acclaimed award-winning banker with over 45 years of experience spanning the Islamic banking, finance, and insurance sectors. He is a founding member of Emaar Properties, Amlak Finance, Emaar Industries & Investments, Emaar Financial services, Dubai Islamic Insurance & Reinsurance Company (AMAN), Nawat. Alex Meeza was named Best Islamic Banking Personality in 2006.
Haqq Network Road map
2022
- May 5, 2022 — Haqq mainnet launches with Proof of Authority consensus. Commence presale starts.
- June 2, 2022 — Gnosis safe deployment on Haqq mainnet.
- June 6, 2022 — Haqq network TestEdge launches with Proof of Authority consensus.
- July 11, 2022 — Haqq network TestEdge transits from Proof of Authority to Proof of Stake; Islamic Coin secures $200M
- Aug 2022 — Over 150 Validators joined Haqq TestEdge.
- Q3, 2022 — Pre-sale ends.
- Q4, 2022 — Listing on Exchanges; Network transition from POA to POS, minting starts (Century Coinomics); Launch of IBC – inter-blockchain communication, connecting Haqq to other IBC-enabled networks; Bridge ISLM to Ethereum; Mobile wallet with halal dApps marketplace.
- Q4 2022 – Q4 2023 — Integration of ISLM as a payment method with up to 20 major partners in the Mena Region (e.g. Emaar, Etihad)
2023
- Q1 2023— Launch of Swiss payment card (Mastercard) backed by Islamic Coin Integration with crypto-fiat processing services, making Islamic Coin available as a payment method in hundreds of merchants in Mena; Evergreen DAO code audit and TestEdge evaluation; Plastic and Mobile Card for Retail Payments based on Brighty.app
- Q2 2023 — Evergreen DAO launch on mainnet.
- Q3 2023 — Gold-pegged Stable Coin in cooperation with TOP UAE banks.
Haqq community
Twitter: https://twitter.com/Islamic_coin
Telegram: https://t.me/islamiccoin_int
Discord: https://discord.gg/aZMm8pekhZ
LinkedIn: https://www.linkedin.com/company/islamiccoin
Medium: https://medium.com/islamic-coin
YouTube: https://www.youtube.com/channel/UCTjvOCTDeO9H67y_6btF1NA
Closing thoughts
Blockchain technology is taking the world by storm and helping to unlock value for people who previously were excluded. It has also been opening new ‘oil wells’ of possibilities upon which innovative products and solutions can be birthed. Islamic Coin aims to drive financial inclusion, and empowerment based on the principles of Islamic finance, and to help usher in a new era of prosperity and development for the Muslim community globally.
With a network of fast finality, EVM and IBC compatibility, ecosystem development DAO and Association, there’s no end to what type of applications can be built on the network however, the success of any Haqq-based product or technology will be dependent on a lot of factors such as capital, community and implementation capacity.
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