Kwenta
Crypto Overview
Overview
Kwenta is a decentralized perpetual futures trading platform built on Optimism, a Layer 2 scaling solution for Ethereum. The KWENTA token serves as the platform's governance token, allowing holders to participate in protocol decisions and receive trading fee revenue.
Intended Utility
The primary purpose of KWENTA is to provide governance rights and revenue sharing for the Kwenta protocol. Token holders can participate in protocol governance through the Kwenta DAO and earn a portion of trading fees generated on the platform.
Actual Utility and Usage
The token is actively used for its intended governance purposes, with regular DAO proposals and voting activity. The platform itself has demonstrated significant trading volume and user adoption, with real utility in providing decentralized derivatives trading services.
Token Distribution and Founder Alignment
The token distribution includes: 50% to traders/stakeholders, 25% to core contributors with a 2-year vesting period, 20% to the DAO treasury, and 5% for future initiatives. The vesting schedule and allocation demonstrate reasonable alignment with long-term protocol success.
Technical Implementation
The platform uses Synthetix's infrastructure for its perpetual futures trading, which involves real asset ownership and value transfer, though the leveraged nature of perpetual futures trading raises some concerns from an Islamic finance perspective.
Crypto Impact
To assign a comfort level investing in Kwenta from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Kwenta.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.