Caizcoin is an economic initiative that combines Islamic principles with DeFi and CeFi to provide consumers with full financial independence. As of 2018, with a global population of 7.6 billion, 1.7 billion people remained financially underserved, especially in emerging economies. While the numbers are expected to reduce with the presence of innovative financial tools, there is still a huge gap to be covered. According to Caizcoin, access to a transaction account is the first step towards broader financial inclusion, as it allows people to store money and send and receive payments.
While it has been part of the initiative of the World Bank Group (WBG) to ensure that people worldwide have access to a transaction account, the most common reason for being underbanked is a lack of money, but other reasons include distance, documentation requirements, distrust in the financial system, and religious concerns.
Lack of trust in banks, account fees, identification, credit or banking history problems, lack of privacy, inconvenient hours or locations, banks not offering the necessary products or services, unacceptable overdraft fee levels, and a lack of Figh (Islamic concept of life), compliant banking services, and products are key reasons for individuals being underserved.
With this in mind, the creators of Caizcoin saw an opportunity to address the aforementioned issues.
Components of Caizcoin
The Caizcoin ecosystem comprises several elements that work together to deliver value to its users. These components consist of:
The Caiz Blockchain combines decentralized and centralized financial systems, with the Stellar blockchain serving as the foundation and a permissioned distributed ledger technology (DLT) as the backbone. For efficiency and robustness, it is regulated by verified stakeholders who assure Fiqh compliance and use a unique consensus method known as the Islamic Federated Byzantine Agreement (IFBA).
The Islamic Federated Byzantine Agreement (IFBA) model builds on the Stellar Federated Byzantine Agreement (FBA) model, which assists network nodes in reaching a consensus on which blockchain network upgrades to implement. IFBA employs a consensus technique to guarantee that nodes agree on ledger contents in an Islamic-compliant manner, while also ensuring minimum intersection for ultimate resilience. In the FBA framework, nodes exchange messages and assert claims about ledger changes, but IFBA assures minimum agreement and allows for more robust decision-making to ensure network efficiency and stability.
The Caiz Blockchain introduces a hybrid model called DeCe, which combines the best features of both decentralized finance (DeFi) and centralized finance (CeFi). It offers fast, affordable, and accessible financial products and services that are fully regulated and Fiqh-compliant, making it easier to understand.
Caiz earn is a liquidity provision program that enables users to lock their Caizcoin tokens in a liquidity pool and gain access to liquidity services through predefined market-making algorithms. This process aims to ensure stability and foster the growth of the Caizcoin ecosystem while allowing users to earn.
Caiz wallet is a digital wallet that allows users to store Caizcoin and other digital assets, such as cryptocurrencies, within the Caiz Ecosystem. Serving as the central component for user interaction with the Caiz blockchain and various services in the ecosystem, it plays a crucial role.
The Caiz wallet seamlessly integrates with the Caiz app, a mobile application requiring users to complete a Know-Your-Customer (KYC) process in accordance with anti-money laundering regulations.
Caiz gold is a stablecoin fully backed by authentic gold and developed on the Caiz Blockchain. It merges the advantageous features of a cryptocurrency, like swift, affordable transfers, and irrevocability, with the price stability of physical gold. Serving as a steady store of value, Caiz Gold can be utilized for stable value transfers in Caiz Remittances and as an investment instrument in other Caiz products.
Caiz stable is a stable cryptocurrency backed by fiat currency within the Caiz ecosystem. Designed to maintain a constant value, it remains unaffected by market volatility and daily price fluctuations typical of other cryptocurrencies. Furthermore, Caiz stable facilitates fast and cost-effective payments while being supported by fiat currency within the Caiz ecosystem. This allows users to transfer money swiftly without concerns regarding market instability.
Caiz NFT is a service on the Caiz blockchain that transforms unique items such as designs, art, and words into Non-Fungible Tokens (NFTs). Each NFT is encrypted into a distinct character string and stored on a decentralized online storage service with a blockchain reference. NFTs feature specific functionality, enabling monetization or usage, and can be traded on the Caiz exchange.
Other features of the ecosystem include Caizcoin payment and banking partners, financial organizations like banks that facilitate transactions between fiat money and cryptocurrencies; Caiz sukuk, a fiqh-compliant investment instrument for users; Caiz tokenization, a program enabling Caiz users to tokenize ownership of their assets and sell these tokenized assets within the Caiz ecosystem; and Caiz relief, the charitable arm of Caiz.
Tokenomics of Caizcoin
The Caizcoin token is a digital currency or payment token, that functions as a payment method on the Caiz blockchain. This allows for fast and secure transactions while also serving as a store of value. Its primary role is to grant access to the ecosystem’s apps, products, and services, including buying and selling goods and services, participating in Caiz earn, and accessing premium features.
The total supply of Caizcoin is 999,999,999, with a circulating supply of 40,000,000 as of Q1 2023, and a locked circulation of 20,000,000. Currently, 4% of Caizcoin’s total supply has been allocated and distributed: 1% was sold and distributed during the seed phase, another 1% during the public sale phase, and the remaining 2% is placed in the Caiz Liquidity Wallet to provide liquidity for exchanges.
According to the Caizcoin allocation, 70% of the token will be for the ecosystem, 10 % for treasury, 8% for the team, 5% for CaizGold, 2% for charity, and the last 5% for growth, legal, advisory, and promotion.
Caizcoin ecosystem provides transactions and financial products that are fiqh-compliant, and ESG-friendly, with low-cost access to services built on the blockchain. The project is designed to prevent illegal activities and transactions through the implementation of AML/ATF compliance procedures.