In a recent discussion with some friends, some have drawn parallels between staking cryptocurrencies and usury, raising concerns about the religious implications.

It was a long debate, so I decided to further bring this discussion here. Without further ado, Let's delve into the reasons some may consider staking as usury and clarify why, in reality, it doesn't fall under that category.

Staking Portrayed as Usury:

1. Returns on Investment:

- Argument: Staking involves earning rewards, akin to interest on a traditional loan.

- Counter: Staking rewards are not interest on borrowed money but are earned for actively participating in securing and validating transactions on a blockchain network.

2. Risk-Free Earnings:

- Argument: Staking is seen as a risk-free way to earn passive income.

- Counter: Staking involves risks, such as market volatility and the potential for loss if the underlying cryptocurrency's value decreases.

3. Capital Accumulation:

- Argument: Accumulating more coins through staking is compared to usurious practices of wealth accumulation.

- Counter: Staking contributes to the network's health and security, and the rewards are tied to this contribution, not a predatory accumulation of wealth.

Why Staking Differs from Usury:

1. Voluntary Participation:

- Staking is a voluntary and participatory act where users actively support blockchain networks by holding and "staking" their coins.

2. Network Security:

- Stakers play a crucial role in maintaining the security and functionality of blockchain networks, contributing to a decentralized and robust infrastructure.

3. No Lending or Borrowing:

- Unlike usury, staking does not involve lending or borrowing money with interest; instead, it is a mechanism inherent to blockchain protocols.

While on the surface staking might seem similar to usury due to its reward structure, a deeper understanding reveals the fundamental differences. Staking is an integral part of decentralized networks, rewarding users for actively participating in maintaining the integrity and security of the blockchain. This distinction is crucial to appreciate the positive role that staking plays in the evolving landscape of decentralized finance. Do not let spirituality take you away from chances of making money. Some of our pastors, priests, and imams are sometimes criticizing what they do not fully understand. Do research and draw your conclusion on certain teachings.