AMA Recap: Islamic Coin X Bitget

4 min readMar 7, 2024

Date: 4 March 2024

Host: bitget.com

Our Co-founders, Alex Malkov and Andrey Kuznetsov, participated in an AMA session with Bitget, delving into the intricacies of Islamic Coin ($ISLM) and HAQQ Network, shedding light on how the project is shaping the future of Islamic finance.

Here’s a recap of the key topics discussed:

$ISLM Within HAQQ Network

$ISLM is the native currency of HAQQ Network, functioning as both a gas fee for transactions and a governance token empowering holders to participate in voting and decision-making processes. Soon, $ISLM will also play a crucial role in the Shariah Oracle, a protocol that will facilitate the ethical assessment of smart contracts within the HAQQ ecosystem. Furthermore, $ISLM will be integrated into the Evergreen DAO, a decentralized autonomous organization dedicated to supporting initiatives that benefit Muslim communities around the world, scheduled for launch in the coming months.

Islamic Coin Approach to Sharia-Compliant Finance

Islamic Coin prioritizes ethical financial practices by meticulously adhering to the principles of Sharia law. This entails a complete prohibition of riba, ensuring financial transactions are not based on the mere exchange of money. Additionally, the elimination of gharar (excessive uncertainty) and maysir (gambling), promoting transparency and real economic activities
Islamic Coin is actively exploring ways to create an internal economy underpinned by tangible assets or services. This approach aims to mitigate speculative practices and foster financial stability within the ecosystem.

Differentiating Features of Islamic Coin

$ISLM is a utility token used in a Proof-of-Stake network and can only be minted through staking. The token is designed for practical transactions within the HAQQ Network, which aims to integrate Islamic finance principles with web3 technologies.
HAQQ focuses on incorporating Sharia-compliant assets which are tangible and rooted in the physical world. This focus on tangible asset backing aligns with Islamic finance and fosters ethical and stable financial practices within the platform.
HAQQ aims to digitize Sukuk (Islamic bonds) contracts on the blockchain for a transparent and compliant financial infrastructure. This provides an ethical alternative to fiat currencies, following Islamic financial principles.

HAQQ Network Architecture

Technology: HAQQ Network combines the strengths of both the Cosmos and EVM ecosystems. Built on the Cosmos SDK, HAQQ offers fast transaction finality and horizontal scalability via IBC compatibility for secure and efficient liquidity bridging and cross-chain swaps. It is also compatible with various Cosmos-based protocols. HAQQ integrates with widely adopted EVM wallets, development tools, and blockchain explorers as an EVM-compatible network. It can easily support smart contracts deployed on other EVM chains like Ethereum, Polygon, and Arbitrum. Sushi, a prominent EVM-native app, is currently deployed on HAQQ, allowing users to trade $ISLM and other tokens with fees generated from trading ISLM, contributing to Evergreen DAO’s treasury. Integrating with blockchain-native partners is quick, easy, and secure, with processes like CEX listing taking only a few days.

Evergreen DAO: As mentioned earlier, the Evergreen DAO will be launched soon. It will offer a unique platform for the Muslim community to collectively decide how to support various initiatives and projects.

Shariah Oracle: This innovative feature currently under development will empower smart contracts to request community and Shariah approval, enhancing the ethical considerations within the HAQQ ecosystem.

HAQQ Wallet: Designed with simplicity and accessibility in mind, HAQQ Wallet removes the complexities often associated with traditional crypto wallets with its Social Login feature. This user-friendly approach aims to simplify crypto access, particularly for individuals unfamiliar with traditional mnemonic phrase-based recovery methods. Furthermore, HAQQ Wallet will be the first to integrate with the Shariah Oracle, guiding users towards interacting only with community and Sharia-approved smart contracts, further solidifying HAQQ’s commitment to ethical practices.

HAQQ Prioritizing Ethereum Compatibility

Haqq prioritizes Ethereum compatibility because it simplifies integration for dApps, exchanges, and institutions. The existing dominance of EVM/Solidity in web3 development allows for easy adoption without learning new technologies. Additionally, the Ethereum ecosystem offers a wide range of auditors and security tools. HAQQ achieves EVM compatibility through Evmos Network components, which implement the Ethereum/EVM protocol and connect it with Cosmos SDK and IBC. This integration enables HAQQ to go beyond Ethereum by accessing IBC tokens and facilitating interchain communication, staking, bridging, and more. HAQQ is also exploring ways to support both EVM and CosmoWasm and make them interoperable with each other.

Takeaways from the Q&A Session

The biggest challenges facing Islamic finance today are scalability, tokenization of real-world assets, and awareness. HAQQ Network addresses these challenges by leveraging layer 1 solutions for scalability, tokenizing real-world assets for Sharia-compliant financial products, and investing in education and outreach programs to increase awareness.
The listing of Bitget token $BGB on HAQQ Exchange is likely, pending Shariah Board approval. It can also be listed on Sushi immediately.
HAQQ Network is collaborating with Ethereum-based RWA providers to tokenize Sukuk contracts. And partnering with brokers and custodians for the traditional aspects. Additionally, HAQQ is developing its own platform for decentralized Sukuk issuance, catering to both retail investors and institutions.
HAQQ Network does not plan to burn $ISLM tokens due to Shariah compliance issues. However, there is a compelling alternative that will allow $ISLM holders to actively participate in the HAQQ ecosystem and share in the financial success of its products.
No KYC verification is required to interact with the HAQQ Network.