KAITO token holders do not receive any share of Polymarket's betting fees or Kaito Markets trading volume. So why is holding KAITO Haram ?

You are correct on every factual point and CoinStudy's analysis acknowledges this explicitly. KAITO token holders do not receive direct distributions from Attention Markets betting fees. sKAITO staking earns governance rights rather than gambling revenue shares. There is no mechanism that sends a percentage of prediction market wagers to token holders. This is a meaningful and important distinction from tokens like NEXO where holders receive explicit annual dividends from lending profits.

So why is holding KAITO still classified as Haram? The answer requires understanding two levels at which Islamic finance evaluates prohibited activities.

The first level is direct income from prohibited sources. This is what NEXO fails: holders explicitly receive dividends funded by interest from lending. KAITO does not fail at this level and CoinStudy's analysis is clear about this.

The second level is equity in a company whose primary business is a prohibited activity. This is what KAITO fails. When a company's core business is prohibited under Islamic finance, holding that company's equity or governance token is also prohibited, regardless of whether profits are directly distributed to token holders or remain in the company.

Consider a conventional example. Islamic finance scholars have consistently ruled that shares in a conventional bank are impermissible even for shareholders who reinvest all dividends and never receive cash distributions from interest income. The prohibition is not only on receiving interest personally. It is on owning equity in an entity whose primary economic activity is interest-based. The shareholder's stake represents ownership of a business built on Riba regardless of how the profits are distributed.

The same principle applies to Kaito. KAITO is the governance and utility token of a platform whose primary 2026 strategic direction is building and operating a prediction market. Holding KAITO means holding a stake in that business. The token's value is connected to Kaito's success as a platform, and Kaito's primary 2026 product is a prediction market. The absence of direct fee distribution to token holders reduces the severity of the concern but does not eliminate the fundamental issue of holding equity in a company operating a prohibited financial product as its core business.

The practical guidance follows from this distinction. Using Kaito Pro for AI research is permissible because you are purchasing a service rather than equity in the business. Holding KAITO tokens is Haram because you are holding a stake in a company whose primary business is building prediction markets, even though you receive no direct gambling revenue from that stake.