Tezos
Crypto Overview
Understanding the Intended Utility
Tezos (XTZ) is a blockchain platform designed for smart contracts and decentralized applications with a unique self-amending governance mechanism. Its primary purpose is to serve as a platform for building decentralized applications while allowing token holders to participate in protocol upgrades through on-chain governance.
Platform Features and Actual Usage
The network utilizes a Liquid Proof-of-Stake (LPoS) consensus mechanism where token holders can delegate their tokens to validators ('bakers'). The platform supports smart contracts and enables the creation of digital assets. Tezos has seen adoption in various sectors, including tokenized real estate, central bank digital currencies (CBDCs), and NFT marketplaces.
Development and Ecosystem Activity
The Tezos ecosystem shows consistent development activity with regular protocol upgrades. The platform has implemented multiple protocol improvements through its self-amendment process, demonstrating active governance participation. Major corporations and institutions, including Societe Generale and Manchester United, have built projects on Tezos.
Token Distribution and Founder Involvement
The initial token distribution included a public ICO in 2017, with tokens distributed among ICO participants, the Tezos Foundation, and early developers. The Tezos Foundation, which manages a significant portion of the funds, regularly publishes transparency reports and funds ecosystem development.
Revenue Model and Operations
The platform generates revenue through transaction fees paid in XTZ, which are distributed to validators. The staking mechanism is compliant with Islamic principles as it represents actual work in securing the network rather than interest-bearing loans.
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.