1️Based on the substances

1. All native tokens of blockchain networks are essentially permissible, whether they support smart contracts (programmable blockchains) or not. The various applications, protocols, or smart contracts built on the blockchain are separate things. As such, it should be understood that blockchains that support smart contracts are like operating systems such as Windows, Linux, and Android. Anyone can use them to build various services and protocols. If any function of something (built on the blockchain) falls under questionable or unlawful activities, it does not mean that investing into blockchain coins also violates sharia law. It is necessary to separate the technology and its use. Example: BTC, ETH

2. All native tokens from oracle protocols and decentralized applications/protocols are basically permissible, unless :

   • Native tokens from protocols that have a primary use case in riba-based lending and borrowing. Examples: AAVE, GEIST, CREAM, etc.

   • Native tokens of protocols that have a primary use case in gambling. Example: FUN, ATRI, etc.

   • Tokens that have a primary use case to access prohibited things, e.g. tokens to access pornography or music services. Examples: AUDIUS, VIB, etc.

   • Native tokens from protocols that have a primary use case to provide synthetic/derived tokens from crypto or non-crypto assets. Examples: UMA, SNX, etc.

   • Native tokens from protocols that have a primary use case for trading futures, options, and other trading derivatives.

3. Native tokens from the game ecosystem to earn something like play to earn (P2E) or move to earn (M2E) is basically permissible as long as there are no restrictions from the game scheme and graphical content. Law of playing the game is a different discussion.

4. Stablecoins are basically permissible. Using them for various use cases such as in usury lending or in gambling platforms is another case. And in our opinion, it is better to avoid the following stablecoins:

   • Stablecoins that use crypto as collateral such as DAI. This is because the minting process involves additional fees that fall under usury. Owning them by minting is obviously not allowed, but if one gets them by buying on an exchange or even being gifted by someone then we need to further investigate the fiqh aspects. Wallahu a'lam.

   • Algorithmic stablecoins, this is because they have no collateral in the form of fiat or crypto assets and only rely on the seigniorage model without any guarantee from the government, so they have certain risks that must be understood by the holder, such as the depeg incident of the Terra UST stablecoin. So it is better to avoid them. Wallahu a'lam