This document discusses how blockchain technology can help advance Islamic finance in a decentralized manner. It proposes several ideas: 1) Creating decentralized autonomous waqfs (DAWs) that function like endowments to distribute financial services and provide liquidity through tokenized assets that could serve as a currency. 2) Using collectives as proxies for "bank branches" to provide financial inclusion to unbanked communities and incentivize work through social networks. 3) Allowing users' digital wallets to function like ATMs through peer-to-peer transfer of tokenized assets, providing added services and liquidity as more users join the network. 4) Developing marketplaces for exchanging tokenized assets as a

1. Islamic Finance
Decentralised
Rethinking Participatory Financial Architecture

2. ETHICAL VALUES BEYOND SPECULATION
Collaboration Risk Sharing Circulation of Wealth
Gratitude Trust Abundance
Partnership Moderation Fairness
“Money was intended to be used in exchange, but not to increase at interest.”
350 BCE Aristotle

3. Contract
Farming
Asset Backed
Bonds
Manufacturing
/ Bridging
Leasing
Contract
Trading - Buy
Low Sell High
CURRENT STATE OF ISLAMIC FINANCE
Murabahah
Istisna’
Banking Contracts
Salam
IjaraSukuk
Equity
InvestmentMudarabah
Islamic Financial Markets worth US$2 Trillion | Malaysian Markets account for US$70+ Billion

4. WHERE DO THE PROBLEMS LIE ?
PEOPLE PROCESSES PRODUCTS
Existing Financial
Architecture

5. WAQF ZAKAT
WELFARE INSTRUMENTS TO THE RESCUE ?
A religious tax of 2.5% taken by the govt to
be distributed only to the poor, the needy,
the debt ridden, people in captivity, etc.
For Absolute necessities; i.e. food, water,
shelter, clothes, amnesty, disaster relief, etc
A Religious Endowment made to either
a religious, educational, family trust, a
charitable cause - or for any other
welfare purposes.
Used for cause based trusts – Education
for Refugees, Breast Cancer
Research, affordable housing
development, microfinance
Irrevocability Perpetuity Inalienability Transparency

6. HOW CAN BLOCKCHAINS HELP ?
DATA
- Public networks with
crypto-currency provide
an Immutable tamper
proof audit trail of data
- Transparent automated
accounting & reporting
- Public chains allow for
permissionless innovation
VALUE
- Some crypto-currencies
are Shariah compliant
- ERC20 standards provide
a way to tokenize
commodities
- ERC721 standards
provide a way to tokenize
assets
CONTRACTS
- Rules and regulation can
be inescapably baked
into the smart contracts -
removing need to trust
people
- Automating contractual
obligations allows for real
time processing
- Radical reduction in cost

7. - In-between Central
Bank and Population
- Distributes Financial
Services to the
Population
- Provides Liquidity
- Medium of exchange
of value
- Incentive for work
- Allows Commerce
- Serves as the
mechanism for
distribution of Funds
- Extracting Value from
Savings and paying for
services
- Role of Regulator
- Applies Monetary
Policy for the ecosystem
- Creates Money
MONEY MAKES THE WORLD GO AROUND
Bank Branches Fiat Currencies ATMsCentral Banks

8. Collectives
- In-between Waqf and
Population
- Distributes Financial
Services to the
Population
Asset backed Tokens
- Provides Liquidity
- Medium of exchange
of value
- Incentive for work
- Allows Commerce
Users
- Serves as the
mechanism for
distribution of Funds
- Extracting Value from
Savings and paying for
services
NO NEED TO REINVENT THE WHEEL
Waqf
- Role of Regulator
- Applies Monetary
Policy for the ecosystem
- Creates Money

9. A Waqf is a cause based Endowment or Trust. The notion of DA-Waqf is an
organizational contract that runs autonomously, in a decentralized manner,
whilst programming the characteristics of a traditional Waqf into the DAW.
Irrevocability Perpetuity Inalienability
Zakat can be used to
service the needs of food
and shelter for the bottom
10%
Transparency
Governance
WAQF AS A CENTRAL BANK
Waqf Education
Waqf Feeding the
Homeless
Waqf Disaster Relief
Waqf Medical Research
Decentralised
Autonomous
Waqf (DAW)

10. - Using 1 company as a proxy to register virtual companies
- Using 1 bankable entity to register Bank Accounts
COLLECTIVES AS BANK BRANCHES
Unbanked use
collectives as a proxy
- Social Inclusion and Social Incentive to work and perform
- Can be a requirement to qualify for Financial Services, health
and Education
- Allows local exchange between members and between
collectives
Potential for Social
Upliftment
- You do NOT Qualify for a loan until you are part of a four or five
team group
Grameen Bank Model

11. TOKENIZED ASSETS AS CURRENCY
Value comes in many forms
- Enables value transfer
- Medium of exchange
- Used as an Incentive to
perform tasks or purchase
more assets
Currency?

12. USERS AS ATMs
- Wallets are used to store
and purchase new digital
assets
- Functionality for the transfer
of value between users
- Inline added services such
as air time, bill payments, etc
Wallets
- Users become ATMs
- The more users that join
the network the more
liquidity is provided to all
- The more liquidity there is,
the more benefits there are
Users
- Hyperlocal exchange
provides liquidity
- Secondary markets allow for
token exchange
- Digital POS tools and virtual
eCommerce stores
Marketplace

13. THANK YOU FOR YOUR TIME
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@HammamRJ