Is it permissible (Halal) to lock BNB through auto-subscription for airdrop/ Launchpool ?

Whether locking BNB through auto-subscription for airdrop/Launchpool is permissible (Halal) or impermissible (Haram) depends on the specific details and how it’s structured. Here’s a breakdown to help you decide:

Permissible Aspects:

  • Holding BNB: Simply holding BNB is not inherently problematic.
  • Airdrop / Launchpool : The reward you get is an Airdrop and is permissible as it does not involve any interest. It is a participation reward based on the total reward pool and number of participants.

Possible Issues:

  • Interest-like Rewards on BNB: The rewards from auto-subscription are structured as interest, it could be considered usury (riba) which is not permissible in Islam.
  • Binance Earn: Launchpool rewards are structured inside Binance Earn, if you put BNB you will get a little interest on BNB and that is haram.

Recommendations:

  • Research the Rewards: Carefully examine how the rewards from auto-subscription are distributed. Are they true profit-sharing or interest-like payments?
  • Locking FDUSD: One way of participating in Binance launchpool is through FDUSD rather then BNB. As FDUSD locking does not give any interest on FDUSD, but FDUSD the reward is usually 20% of the airdrop pool, as compared to BNB which gets the 80% share.
  • Scholarly Guidance: Consulting with a qualified Islamic scholar who is familiar with cryptocurrency can provide the most specific guidance based on your situation.

People think BNB locking is equivalent of Staking, that is not the case as it is not staking while staking is halal.

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