# Is the reward received from Staking has an interest component to it? Or is it just the reward from providing validation?

I am essentially trying to understand if the reward gained from Crypto staking on Binance is halal or haram from an Islamic perspective. Interest in Islam is Haram and Binance uses the term interest for rewards interchangeably. Just want to understand if the interest component in staking is just pure rewards from validation?

##### Post Metadata
- Posted at: over 4 years ago
- Author title: Data Scientist / Head - Global Partnerships and Alliances at International School of Engineering (INSOFE)
- Net upvotes: 1


## Comments
### Comment 1

When you stake in Binance, while you get rewarded with some fractions of new coin listing for staking, your staked coin will also yield profits. So amazing 🤩

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##### Comment Metadata
- Posted at: almost 4 years ago
- Author title: Bolt Driver at Bolt (Taxify) 



### Comment 2

It has

##### Comment Metadata
- Posted at: over 4 years ago
- Author title: --


#### Reply 1

The tokens are required for the network to recognize a validator node, and there is a chance that the validator node will be selected to participate in verifying transactions on the blockchain. The staked tokens make the node work.  Some exchanges allow you to contribute your tokens to their nodes, and average the rewards. In this way they can offer you “interest" but it isn't exactly the same as lending your money out. It's more like investing in a business for a share of the profits.  There is also a way to earn interest with tokens that is more like a traditional loan. On exchanges that offer margin trading you can offer your tokens on their swap market. If someone borrows your tokens to try and short the market then they will repay you with interest.

##### Reply Metadata
- Posted at: over 4 years ago
- Author title: --

#### Reply 2

So in view of Islam it's Haram to stale but it halal to invest instead of staking

##### Reply Metadata
- Posted at: over 4 years ago
- Author title: --

#### Reply 3

Can you please elaborate?

##### Reply Metadata
- Posted at: over 4 years ago
- Author title: Data Scientist / Head - Global Partnerships and Alliances at International School of Engineering (INSOFE)



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