Stellar
Crypto Overview
Purpose and Utility
Stellar is designed as a decentralized payment network that enables fast, low-cost cross-border transactions and serves as a bridge between different currencies, both fiat and crypto. The platform aims to make financial services more accessible globally, particularly in underserved regions.
Business Model Analysis
The Stellar network operates through a native token (XLM) that serves multiple purposes: facilitating multi-currency transactions, preventing spam by requiring minimal account balances and transaction fees, and enabling quick currency conversions. The network's core operations align with Islamic principles as they focus on facilitating legitimate trade and value transfer.
Real-World Adoption
Stellar has established notable partnerships with financial institutions and technology companies. The Stellar Development Foundation has collaborated with MoneyGram for real-time money transfers, and various companies use the network for remittances and asset tokenization. The platform processes millions of transactions monthly, demonstrating actual utility.
Platform Development
The Stellar Development Foundation actively maintains and upgrades the network. Recent developments include protocol updates improving scalability and security. The ecosystem shows continuous growth with new projects building on the platform.
Token Distribution
The Stellar Development Foundation (SDF) manages a significant portion of XLM tokens, with a transparent mandate for development, partnership growth, and user acquisition. The foundation regularly publishes reports on token usage and burns excess supply to maintain transparency.
Crypto Impact
To assign a comfort level investing in Stellar 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 Stellar.
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.