Loom Network
Crypto Overview
Understanding the Intended Utility
Loom Network was launched in 2018 as a Layer 2 scaling platform for Ethereum, designed to enable developers to run large-scale social applications and games on the blockchain. The LOOM token is used for platform governance, staking, and transaction fees within the network.
Business Model & Current State
The platform aims to provide a solution for decentralized applications that require high performance and scalability. Initially focused on gaming and social applications, Loom Network has evolved to offer cross-chain integration capabilities, allowing communication between different blockchain networks.
Actual Utility Assessment
The network demonstrates genuine utility through its Layer 2 scaling solutions and cross-chain capabilities. The LOOM token serves multiple purposes within the ecosystem: governance rights, validator staking, and network fee payments. The project maintains active development, with recent updates focusing on cross-chain infrastructure improvements.
Token Distribution and Governance
The token distribution shows a relatively balanced allocation, with tokens distributed among the community, team, and ecosystem development. The project implements vesting schedules for team tokens, demonstrating commitment to long-term development.
Technical Implementation
Loom Network operates as a Proof-of-Stake network, where token holders can participate in network security and earn rewards through validation activities. This mechanism aligns with Islamic finance principles as it represents actual work and value creation rather than interest-based returns.
Crypto Impact
To assign a comfort level investing in Loom Network 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 Loom Network.
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.