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Is anyone familiar with the cyrpto protocols out there (like providing liquidity and staking, etc) in terms of knowing if there are issues of Ribbis?

I am currently contributing a minicsule amount to a liquidity pool that enables trading (as opposed to a pool for borrowing) but I am not familiar with all the issues and technologies.

Thank You.

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    Please edit to include definitions of these financial concepts, so the community can answer with respect to Judaism.
    – Isaac Moses
    Mar 17 at 16:49

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From what I understand, staking is the payment of "rewards" or "awards" from the entire token owning community for allowing your specific tokens to be "locked up" for a certain amount of time which strengthens the blockchain and proof of ownership It is not time dependent in terms of a set percentage rate for a set amount of time. In effect it's like leasing out your property for rent. You earn a time dependent reward for the use of your property. The IRS has ruled tokens are NOT currency and NOT securities for tax purposes. They are property. Also, it seems clear there is no other party paying you these awards. They are generated from the community as whole, the blockchain in total. In addition, their payment increases the total tokens available so if every single holder of this token staked their tokens for the same amount of time they would each get a proportionate to holding number of new tokens. This is like a stock split in the security world. There is no overall accretion to wealth. The fact that only some token holders stake, means they earn the award but it's like if a stock offers to split but only for those who apply. It's still a split, not a payment for the use of the stock. Thats my understanding.

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    I don't see any Judaism information in this answer, so I am inclined to delete it.
    – Isaac Moses
    Mar 17 at 16:49
  • I think it's more a question of how staking works and then fitting in Ribbis issue within it. I was giving information on the way it works having investigated it and traded it and being a cpa with tax knowledge. Until such time as some known Rabbi investigates and understands "staking" and crypto and brings Daas Torah to it, which may not be for years, the information I provided seems useful. In fact, it may allow a Posek to begin investigating it and comparing the way it works to Halachic sources of a similar bent. Up to you.
    – motel
    Mar 19 at 15:33
  • If it's information about the realia that could be helpful for a Judaism expert (whether officially imbued with Daas Torah or just learning) to consider in answering the question, it's information that probably belongs in the question.
    – Isaac Moses
    Mar 19 at 15:43

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