HAQQ’s path forward: a new model built on real utility and shared revenue.

Since HAQQ Network’s inception and the launch of the ISLM token, we - the most active contributors to the network - have been striving to make our Layer 1 the go-to infrastructure for Sharia-compliant finance, ethical investing, and to address the structural inefficiencies of the current financial system while bringing tangible value to our users and ISLM holders.

We have achieved significant results across many areas. However, we also faced setbacks, misalignments, and external shocks - from regulatory constraints to geopolitical turbulence - that slowed us down and forced us to adapt. Over this period, we introduced multiple tokenomics adjustments, product pivots, and market re-focusing efforts to stay aligned with our mission.

By today, we have gathered extensive feedback from more than 200 partners across over 10 emerging Islamic markets, explored various MM strategies and technical configurations, and tested multiple go-to-market hypotheses. All this experience led us to several firm conclusions and formed our view of the most probable setup for long-term success - which we now share with the DAO.
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1.   Haqq Layer 2 - Extending Our Mission Beyond Layer 1‍

Back in 2022, building a dedicated Layer 1 chain made perfect sense.At that time, it was the only viable option for a team aiming to build a Sharia-compliant financial network with full autonomy, independent validators, and community governance. Coupled with the Euphoria of Cosmos’s vision, “the internet of blockchains”, the idea of interconnectivity with like-minded projects while maintaining sovereignty was the only reasonable option.

Regrettably, the market decided otherwise, and the landscape has changed. Today, with the rise of high-liquidity Layer-2 ecosystems such as Optimism, Arbitrum, and Base, it is far more rational to position Haqq as an L2 network integrated with Ethereum, rather than maintaining a separate L1.

By launching an L2, we can strengthen Haqq’s reach, efficiency and unlock direct access to deep Ethereum liquidity and DeFi infrastructure. This evolution allows us to channel more value toward users, products, and real market activity, while preserving the mission and sovereignty established on the L1.
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2.   Emerging Islamic markets require a specific and limited set of crypto services‍

Through field research, pilot integrations, and user studies, we identified a consistent pattern:Users in Islamic markets don’t need complex DeFi primitives - they need  simple, accessible tools that solve real-world problems.

The key use cases we’ve confirmed include:

• Remittance and local payment solutions;
  
  
• Trading and investing gateways (for example, Firoza);
  
  
• Hedging against weak local currencies through gold-backed or stable tokens (Deenar);
  
  
• Zakat and charity solutions, such as the FairShare program launched with NUcare Indonesia.

These products create the first bridge for millions of users to participate in crypto - with clear purpose and minimal complexity.
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3.   Mass adoption requires direct financial link between DAO participation and ecosystem performance

DAO members and token holders must be financially tied to the network’s success, not just ideologically aligned. Indeed, this is part of Sharia principles, the mutual risk and reward of an endeavour.

Currently, participation brings governance power but not enough direct benefit to motivate large-scale engagement.

We believe that a good solution for this model could be the introduction of a unified value layer (e.g., a token) that aggregates financial flows across all products - Firoza, Deenar, RWA, remittance tools, and others fostered by the DAO - , establishing a transparent connection between participation, ecosystem growth, and real economic returns.

Each product will contribute a portion of its revenue or commission flow back to the DAO treasury and distribute a share to ecosystem token holders. Generating real yield for users and providing tangible metrics for participants to view.

This model incentivizes participation, creates a real-yield structure, and simplifies the user journey by linking every action - from payments to staking - with tangible financial upside.
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Taking this into account, we have outlined several key ideas for upcoming DAO proposals:

1.   Ecosystem Token

Based on the current framework and feedback gathered, we plan to launch a new ecosystem token which will serve as:

• The governance and revenue-sharing token for the entire Haqq ecosystem;
• A bridge connecting user activity, DAO operations, and financial yield;
• The native or gas currency of any integrated ecosystem application such as Firoza, MM Chat and others.

Ecosystem token holders will receive a share of ecosystem commissions generated by all active products - creating a unified reward and participation structure.
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2. ISLM → Ecosystem Token Swaps

A voluntary swap mechanism will allow ISLM holders to exchange their tokens for the new ecosystem token. Each swap will automatically burn ISLM and mint ecosystem token in the corresponding amount (ratio to be defined by a vote of the DAO), ensuring a deflationary transition.

In the interest of fairness and to reward early adopters of our newly established ecosystem token, a burn curve will be instituted with early burners of ISLM receiving an advantage against those burning later in the process.

Crucially, all current members of our community, irrespective of size, will have the opportunity to participate in the activities of the L2 or continue with their L1 journey.

These steps form the foundation of our next stages of growth, while rewarding long-term believers in the project.

The burn and mint process sequence:

1. Governance vote on activation of the Burn & Mint upgrade;
2. Implementation of Burn & Mint module on L1 mainnet;
3. Execution of ISLM burn cycles synchronized with ecosystem token minting;

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Closing Note

These steps mark a critical milestone for HAQQ Network and ISLM. We’re moving from a standalone blockchain to a scalable ecosystem - from a network maintained by inflation to one fueled by real utility and shared revenue.

The vision remains the same: to make ethical finance accessible, transparent, and profitable for all. But the structure evolves - towards targeted growth, user ownership, and long-term impact.

In the true spirit of decentralisation and openness, all participants of our community will have the option to burn their ISLM for the ecosystem token. This of course includes vested coins and coins currently placed within the United Contributors DAO by governance proposal #33.

We have released iterations of the L2 testnet in recent weeks, we envisage launching the mainnet in the nearest future with a bridge solution between both the L1 and L2 networks soon thereafter to facilitate flow of liquidity.

Governance voting and proposal drafts will follow in the upcoming weeks.

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