Serum

Overview

Serum was launched in 2020 as a decentralized exchange (DEX) protocol built on the Solana blockchain. The SRM token was designed to serve as both a utility and governance token within the Serum ecosystem.

Purpose and Utility

The primary intended purpose of SRM was to facilitate decentralized trading, provide fee discounts on the Serum DEX, and enable governance participation. Token holders could stake SRM to earn a portion of transaction fees and participate in protocol decisions.

Current Status

Following the collapse of FTX in late 2022, which was closely connected to Serum, the original protocol became largely inactive. The community forked the protocol to create OpenBook, essentially abandoning the original Serum implementation. The SRM token's utility has been severely diminished since these events.

Business Model Analysis

The original business model focused on decentralized exchange services, which aligned with Islamic principles as it facilitated direct peer-to-peer trading of digital assets. The protocol did not engage in interest-bearing activities or other prohibited sectors.

Development and Adoption

Current development activity on the original Serum protocol is effectively non-existent, with the community having moved to the OpenBook fork. The original SRM token has minimal practical utility in the current ecosystem.

Token Distribution

A significant portion of SRM tokens was held by FTX and Alameda Research, which has created uncertainty about the token's current distribution following their bankruptcy.