Why is staking Kaito token for airdrops haram but participating in campaigns of halal projects is halal? And is the Kaito NFT multiplier also haram?
Question context
CoinStudy's answer
Research opinion from the CoinStudy Sharia team. Not a fatwa.
These three questions address one of the most important compliance distinctions in CoinStudy's airdrop guidance framework. The principle that connects all three answers is the same one the Chairman established in his Binance Alpha Points ruling: the activity determines the ruling, not the motivation behind it. Whether an activity is permissible depends on what you are actually doing, not on what reward you hope to receive from it.
On Question 1: Why is participating in campaigns of halal projects permissible while staking KAITO for airdrops is not?
When you participate in a campaign for a halal project, the activity you perform is genuine engagement with that permissible project. You are writing content, sharing information, testing a product, or completing tasks that create real value for a genuine project. The airdrop you receive is compensation for that genuine productive activity. This is the same principle CoinStudy applied to Axis Robotics: genuine work performed for genuine compensation is Ijarah-compatible service income regardless of whether the compensation arrives as salary or as a token airdrop.
When you stake KAITO tokens to receive 20% of all partner project airdrops, the activity you perform is depositing capital into a Kaito staking contract and waiting. No genuine work is performed. No genuine service is provided. The airdrop allocation you receive is determined by how much KAITO you have locked and for how long, not by any genuine productive contribution to the projects distributing those airdrops. This is capital deployed for passive returns, which resembles the Guaranteed Interest structure that Islamic finance identifies as prohibited.
The distinction is precise and important. Earning an airdrop through genuine campaign participation is rewarding genuine work. Earning a share of other people's airdrops through KAITO staking is earning passive income from capital deployment. The first resembles Ijarah. The second resembles interest income.
On Question 2: Why might a Kaito NFT multiplier on campaign earnings be assessed differently from KAITO staking?
This question requires specific analysis because it identifies a genuine distinction within Kaito's ecosystem. A 10% multiplier on airdrops earned through genuine campaign participation in halal projects is structurally different from KAITO staking for passive airdrop allocation.
If the Kaito NFT multiplier amplifies rewards that originate from your own genuine productive work in permissible campaigns, the multiplier is an enhancement on permissible income. The underlying income is earned through genuine halal activity. The NFT provides a bonus on top of that genuine activity. This is closer to a loyalty benefit on permissible earnings than to passive interest income from capital deployment.
However CoinStudy has declared the Kaito ecosystem Haram due to prediction market involvement. This ecosystem-level Haram classification creates a specific compliance concern for the NFT multiplier even if the multiplier mechanism itself is structurally closer to permissible than KAITO staking.
The reason is the same reason CoinStudy established in the Binance Alpha Points ruling on mixed ecosystems: when an activity's rewards flow through a Haram-classified platform as the distribution mechanism, the permissibility of the underlying activity does not automatically make all rewards from that platform permissible. Engaging with Kaito's NFT system, even for multipliers on otherwise permissible campaign earnings, creates a financial relationship with a Haram-classified platform.
The honest practical guidance is this. The specific activity of participating in genuine campaigns for halal projects is permissible regardless of which platform tracks that participation. If those campaign rewards are tracked and amplified through a Haram-classified platform's NFT system, Muslim investors face a specific choice: either receive rewards through a different channel that does not involve the Haram-classified ecosystem, or accept that engaging with the Haram platform's reward infrastructure creates entanglement with the prohibited ecosystem.
On Question 3: Is KAITO token staking for the 20% airdrop allocation Haram?
Yes. KAITO token staking for the 20% of partner project airdrops distributed to stakers is Haram for two independent reasons.
The first reason is that the activity itself, locking KAITO tokens to receive a percentage of airdrops from partner projects, is passive capital deployment for predetermined-rate returns rather than genuine productive work. You receive airdrops from projects you have not contributed to, proportional to your staked capital amount. This resembles the Guaranteed Interest structure where capital deployment earns returns regardless of any service performed.
The second reason is that KAITO's ecosystem is Haram-classified due to prediction market involvement, as CoinStudy has established. Staking KAITO, the native token of a Haram-classified ecosystem, means holding and deploying capital in a way that benefits from and contributes to the growth of a prohibited platform. The 20% airdrop distribution to stakers is funded by Kaito's commercial partnerships, which include prediction market activities that trigger CoinStudy's Gambling red line.
The Chairman's ruling in the Binance Alpha Points case established the precise principle: the underlying activity determines the ruling, not the motivation. Staking KAITO because you want to receive halal project airdrops does not make the KAITO staking permissible. The staking is passive capital deployment in a Haram-classified ecosystem's native token. The motivation of receiving halal project airdrops does not change what the staking activity is.
The permissible alternative is to participate directly in campaigns of halal projects through their own airdrop programs, earning genuine campaign rewards through genuine productive activity, without routing those rewards through Kaito's staking infrastructure.
Read detail analysis of Kaito token here:
Is Kaito Halal ?