Our Vision - Amana DAO

The Amana DAO was created to support an ecosystem for Muslims around the world to benefit from the new wave of cryptocurrency, blockchain technology and digital infrastructure. The Amana DAO looks to provide a digital backbone for a community to access these technologies in a fully Shari'ah compliant framework. The Amana Protocol has worked extensively with experts in the field of Islamic Finance, Islamic legal scholars and crypto technology specialists to develop a methodology that enables Muslims to purchase, hold, trade and redeem cryptocurrencies in a fully Shari’ah compliant framework. The Amana Protocol currently remains the only protocol to obtain a fatwa (Islamic legal declaration) for Shari’ah compliance from leading Islamic scholars. The full advantages of cryptocurrencies as a store of value, a means of transaction and as a secure and transparent network can now be accessed in a Shari’ah-compliant token by Muslims around the world.

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Why?

Cryptocurrencies are becoming increasingly popular as both a store of value and transactional currency. As platforms continue to open up channels for the acceptance and utilization of cryptocurrencies in everyday transactions, the digital asset class is becoming progressively more popular. Unfortunately, for many of the adherents of the religion of Islam, cryptocurrencies continue to be deemed impermissible by Islamic scholars. The Islamic code of law that governs financial transactions, Shari’ah law, dictates that the high volatility in cryptocurrencies creates an inherent level of risk which invalidates cryptocurrencies as permissible investments for followers of the Islamic faith.

For the 1.5 billion followers of the Islamic religion, many Muslims also continue to face socioeconomic and geopolitical tensions which have created instability and unpredictability for their native fiat currency. Many Muslim families have seen the value of their assets decline rapidly as a result of crashes in currency and runaway inflation. Rapid declines in purchasing power have placed tremendous pressure on struggling families who continue to battle against rising inflation, limited monetary liquidity and higher costs of basic goods. For other Muslims, they continue to live in countries whereby trade restrictions and limitations on international trade and employment have created socioeconomic pressure and an inability to participate or benefit from opportunities in international business or foreign trade.

There are 57 Islamic countires recognized by the Organization of Islamic Countires (OIC).

Many currencies in the Muslim World have come under pressure as purchasing power has declined. Many currencies have lost significant value and inflation remains historically high.

What?

The Amana Protocol has developed a fully Shari’ah-compliant SPL token on the Solana Blockchain in the form of an Amana token. These Amana tokens offer full transparency of the Blockchain and can dynamically track the pricing of the underlying cryptocurrency – Bitcoin or Ethereum. Amana token holders will benefit from the underlying cryptocurrency’s efficiency in transaction volume, distribution and execution of smart contracts.

By creating a Shari’ah-compliant layer of market microstructure and using smart contracts to manage the distribution, pricing and supply of Amana tokens, the Amana Protocol creates a layer of infrastructure to provide stability and oversight in an otherwise non-Shari’ah compliant market. By pegging the token price to the underlying Bitcoin or Ethereum and regulating the supply of tokens, Amana tokens are designed to function as stablecoin while also retaining many of the benefits of the underlying cryptocurrencies.

Our ABTC and AETH Tokens

Amana Token
User
$
Amana Protocol
Amana Protocol Pricing Algorithm
Cryptocurrency Market & Blockchain Technology

How?

The Amana Protocol Pricing Algorithm ("APPA") is a proprietary technology engine which serves as the execution backbone of the Amana Protocol. The APPA is endowed with several capabilities including

Dynamic Load Management
Market Making
Pricing Engine
Stabilization Machine - Artificial Intelligence
Liquidity Model
Tracking Algorithm

Functionally, the APPA enables the Amana tokens to operate largely as stablecoins with a comprehensive back-end architecture to ensure formulaic and dynamic pricing. The APPA’s ability to tap directly into the market pricing of cryptocurrencies is designed to further eliminate the excessive volatility and pricing risk of the underlying cryptocurrencies they are tracking.

Amana Protocol Pricing Algorithm

Dynamic Load Management

Monitors Volume

Monitors extreme movements in underlying cryptocurrency

volatility Mitigation for tracking currencies
Market Making

Facilititated two-way pricing for minting and burning of Amana Tokens
Pricing Engine

Ensures smooth and stable pricing of Amana Tokens

Ensures steady corelation with BTC/ETH underlying
Stabilization Machine (AI)

Proprietary AI engine that adjusts supply, pricing and market conditions for Amana Tokens
Liquidity Model

Creates efficiences for trading of Amana Tokens

Retains buffer of Amana Tokens to smooth pricing volatility
Tracking Algorithm

Ensure 1:1 price tracking of Amana tokens to underlying target crypto

Given this layer of pricing stability, Muslims can then purchase ABTC and AETH directly to benefit from exposure to BTC and ETH without the daily volatile price and market movement fluctuations. All transactions will be fully regulated and managed by the Amana Protocol infrastructure using the APPA engine, the Shari’ah compliance governance model and their dynamic market microstructure model.

The Amana tokens have been designed to directly track the underlying price of the asset with pricing at 1:1 parity. The Amana Bitcoin (ABTC) will track 1:1 with Bitcoin at the prevailing market price, similarly the Amana Ethereum coin (AETH) will track 1:1 with Ethereum at the prevailing market price. Amana token holders can then buy, hold, exchange and sell the Amana coins in an end-to-end Shari’ah-compliant transaction with full pricing visibility of the underlying Bitcoin or Ethereum. Bitcoin can also be converted into ABTC and Ethereum can be converted into AETH via the Amana Protocol Pricing Algorithm (the “APPA”) enabling holders to convert their current non Shari’ah-compliant holdings into Shari’ah-compliant holdings while retaining the benefits and value of their holdings.

Shari’ah Compliance

Shari’ah Compliance is obtained and regulated by a systematic framework that is fully integrated in the Amana Protocol. The Governance Committee is put in place to ensure that the Shari’ah Scholars, Auditing entity and Blockchain function in a clear unified framework to support the continued compliance and permissibility of the Amana Protocol.

The Shari’ah Supervisory Board of licensed and regulated Islamic Asset Manager, Algebra Commodities, headquartered in Kuala Lumpur, Malaysia has issued a fatwa certification on the Islamic compliance of the Amana Protocol and the Amana Protocol Pricing Algorithm engine. This certification extends to the permissibility of the Amana Protocol as a Shari’ah-compliant methodology of “Islamization” of tokens. Algebra Commodities will remain involved in providing Shari’ah support, governance and oversight for the Amana Protocol and its activities.

Shari’ah Compliance Governance Committee

Shari’ah Supervisory Board (SBB)*

Issues fatwa

Monitoring adherence to Islamic compliance

Approval of audit report

Qualitative audit of report book and custodian
Audit

Technical Blockchain Audit

End-to-end Transaction audit

PoS/PoH audit

Monitoring of APPA / Compliance Protocols

General audit report for Shari’ah Supervisory Board
Blockchain Compliance

Solana Blockchain registry (Pos / PoH)

Full transparency & visibility

SPL token registry

Such compliance is necessary on an ongoing basis to not only ensure adherence to the Shari’ah requirements of the Protocol but also to provide additional oversight and transparency into the activities of the custodian, the distribution of the tokens and the transactions in the Blockchain.