Tezos
Crypto Overview
Intended Utility
Tezos (XTZ) is a blockchain platform designed for smart contracts and decentralized applications (dApps) with a unique self-amending governance mechanism. The platform allows token holders to participate in protocol upgrades through on-chain governance, avoiding hard forks. The native token XTZ is used for governance voting, staking (called 'baking' in Tezos), and transaction fees.
Business Model Analysis
The platform's core business model revolves around providing a secure, upgradeable blockchain infrastructure for decentralized applications. The model is transparent and well-documented, with clear technical specifications and governance procedures. The primary revenue source comes from transaction fees and block rewards, which are distributed to validators ('bakers').
Real-World Adoption
Tezos has gained significant adoption in the NFT and DeFi sectors, with major partnerships including Manchester United, Team Vitality, and several financial institutions. The platform processes hundreds of thousands of transactions monthly, with active development across NFT marketplaces, DeFi protocols, and gaming applications.
Token Distribution
The initial token distribution was conducted through an ICO in 2017, raising $232 million. The Tezos Foundation maintains significant holdings but operates transparently with regular public reports on treasury management and grants. The foundation follows a conservative approach to token management and regularly publishes activity reports.
Development Activity
Tezos maintains strong development activity with regular protocol upgrades through its on-chain governance mechanism. The platform has implemented multiple protocol upgrades that have improved performance and functionality. The developer community is active, with numerous teams building on the platform.
Revenue Model Assessment
The platform's revenue model is based on transaction fees and staking rewards, which are distributed to validators who secure the network. The staking mechanism (baking) follows a delegated proof-of-stake model that does not involve traditional interest-bearing mechanisms that would raise Shariah concerns.
Crypto Impact
To assign a comfort level investing in Tezos 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 Tezos.
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.