Is Midnight (NIGHT) Halal or Haram?
SUMMARY
Midnight (NIGHT) is a privacy-focused Layer 1 blockchain developed by IOG. The token serves as a native protocol position used for governance, network security (PoS staking), and generating DUST for transaction fees. The network provides neutral general-purpose infrastructure with no identified exposure to haram activities, rendering it permissible to hold and stake.
Verdict by Activity
How you can hold and use NIGHT
Buy & Hold
Buying and holding NIGHT is permissible as it is a native utility token for a neutral privacy blockchain with no haram business activities.
Native PoS Staking
OptionalStaking NIGHT to secure the network is a permissible validation service, funded partially by protocol inflation.
DUST Generation
Holding NIGHT automatically generates DUST, a non-transferable resource used exclusively for network transaction fees.
Shariah Component Breakdown
Shariah Analysis
Infrastructure — where it runs
PassedThe asset runs on its own native Layer 1 blockchain, which serves as neutral general-purpose infrastructure.
Application — what it does
PassedThe protocol operates a privacy-focused blockchain network with no evidence of riba, maisir, or haram industry exposure.
Asset — what you own
PassedUtility is governance, network security (PoS staking), and generating DUST for transaction fees. Staking rewards are funded partially by inflation, which is permissible payment for validation services.
Property Status (Māl)
PassedNIGHT is a native protocol position with established lawful use, ascertainable supply, and no discretionary freeze or mint authority.
Revenue Purity
PassedProtocol revenue comes from transaction fees with no haram revenue identified. The treasury's fiat interest practices are unknown, but this does not affect the token's revenue purity.
Legitimacy & Security
whitepaper
PassedComprehensive documentation and a whitepaper detailing tokenomics and network architecture are available.
project audits
CautionSecurity information is present, but the research does not name a specific completed independent audit.
social presence
PassedStrong backing by IOG and Charles Hoskinson indicates an established social and industry presence.
Team & Ecosystem
team background
PassedThe project is developed by Input Output Global (IOG), a known and credibly experienced team in the blockchain space.
Detailed Shariah Report
Midnight (NIGHT) is a privacy-focused Layer 1 blockchain developed by Input Output Global (IOG) that enables programmable privacy for decentralized applications using zero-knowledge proofs. The NIGHT token serves as the network's native utility and governance asset, used to secure the blockchain through staking and to generate DUST, a resource required to pay transaction fees.
The Halal verdict is based on a three-layer Shariah screen evaluating the infrastructure, the application, and the asset itself. Midnight operates as its own neutral, general-purpose Layer 1 blockchain, meaning the underlying infrastructure is permissible and hosting third-party applications does not taint the native asset. At the asset layer, NIGHT qualifies as recognized digital property (Mal) because it is a native protocol position with a fixed, ascertainable supply of 24 billion tokens, exists on-chain without discretionary freeze authorities, and carries genuine lawful utility. Regarding specific activities, buying and holding NIGHT is Halal because it is a utility token for a neutral network with no exposure to prohibited business activities like gambling or interest-based lending. Holding the token automatically generates DUST, a non-transferable resource used exclusively for network fees, which is a permissible utility mechanism. Additionally, the opt-in Native PoS Staking mechanism is Halal; staking NIGHT to secure the network is a permissible validation service where participants earn an estimated 2-5% APY funded by protocol incentive reserves and inflation, representing a lawful reward for work.
- The underlying infrastructure is a neutral, general-purpose Layer 1 blockchain with no inherent ties to prohibited (haram) activities.
- NIGHT functions as recognized digital property with a fixed supply of 24 billion tokens, self-custodial ownership, and no discretionary freeze or mint authorities.
- Holding the token provides genuine utility by automatically generating DUST, which is required to pay for network transaction fees.
- Opt-in Proof-of-Stake (PoS) validation is permissible, as staking rewards (2-5% APY) are funded by protocol reserves and inflation in exchange for securing the network.
- Protocol revenue is derived purely from transaction fees, with no evidence of interest (riba) or gambling (maisir) mechanisms.
- !While the protocol itself is free of interest, it is unknown whether the project's off-chain treasury earns interest on fiat holdings in conventional banks; however, this does not flow to token holders or affect the token's Shariah compliance.
- !Security information is present, but research does not name a specific, completed independent smart contract audit, warranting standard investor caution.
Not applicable. The protocol's revenue is derived entirely from permissible transaction fees, and no impure income flows to NIGHT token holders. Therefore, no purification is required for holding or staking the asset.
Midnight (NIGHT) is a Shariah-compliant Layer 1 blockchain token that provides genuine utility through governance, network security, and transaction fee generation. Both holding the asset and participating in its native Proof-of-Stake staking mechanism are permissible, as the network operates without exposure to interest or prohibited industries. As always, final religious authority on investment permissibility rests with a qualified Shariah scholar.
How this verdict was reached
This is not an opinion issued by ShariaQuant. It is the output of a documented screening methodology applied to researched facts about Midnight (NIGHT), and every row above states the specific evidence that drove it — so the reasoning can be examined rather than taken on trust.
The framework screens three layers — the infrastructure an asset runs on, the application it serves, and the asset itself — and separately tests whether the token qualifies as recognised property (māl): that it presently exists, has an ascertainable supply, can be held and transferred, and carries a genuine lawful use. A failure at any single layer fails the asset.
Revenue-purity thresholds follow the AAOIFI screening standard: non-compliant income below 5% of revenue is tolerated and purified, while 5% or above fails the screen.
The framework follows published scholarship rather than in-house opinion. Treating a digital asset as a right (ḥaqq) that becomes recognised property (māl) only on stated conditions follows “Is Crypto Halal? The Definitive Shariah Guide to Crypto and Digital Assets” by Mufti Faraz Adam (Amanah Advisors, 2026), which reproduces the conditions identified by Mufti Taqi Usmani. Financial thresholds follow the AAOIFI screening standard. The rulings we track are collected in the fatwa library.
AAOIFI has not reviewed, approved or endorsed this report or ShariaQuant, and no scholar named in our methodology has reviewed this individual verdict. This is analysis, not a fatwa — final religious authority rests with a qualified scholar.
Is Midnight a serious project?
Permissible is not the same as good. This is the research behind that second question — what Midnight is actually for, who is paying for it, what is already built, and what would have to go wrong.
Research on the project, not advice on the trade. A high fundamental score is not a recommendation to buy, and it says nothing about whether the asset is permissible — that is the Shariah verdict, and it is free.
How Midnight ranks against its peers
The Shariah verdict tells you whether you may own Midnight. This tells you what you would be holding — measured from market data, with no AI judgment in it, and compared only against assets of the same kind.
A ranking of how solid an asset is against its peers, not a forecast of what it will do next and not investment advice. A permissible asset can rank badly, and a badly ranked asset can still rise.
Asked alongside this
Short answers from the ShariaQuant team.
Knowing it passes is the easy half
Midnight passing the screen does not tell you how to buy it without leverage, how much of your portfolio it should be, or when to sell. The free module covers the fiqh those decisions rest on.
Both are free. The module includes the community — no card required.