Prophet Muhammad (S) was a merchant. Even before divine revelation, Muslims believe that Muhummad’s character and composure was worth striving toward.

He was known throughout Mecca as Al-Amin and Al-Sadiq, the trustworthy and the truthful. He was easy in trade, and charitable with his profits. There are hundreds of hadith from the life of the Prophet (S) where he preaches fairness and productivity in markets.

Islamic economics doesn’t assert an ideology. Arguing that Islam is capitalist or socialist doesn’t really make sense – there are principles, but those principles can fit within a variety of systems.

For example, while Islam places a strong emphasis on charity and redistribution, there is no explicit limitation on wealth. In fact, the Prophet (S) is recorded to have said, “Lawful wealth is excellent for the righteous man.” While hoarding wealth can be a means of straying further from Allah, spending it for good can make wealth a blessing. Even Islam’s prohibition of interest is rooted in the idea that we should not exploit those with less money, maintaining a focus on interpersonal interactions.

All of this is to say that Islam takes a very values-based approach to economics, emphasizing the importance of the individuals within the system rather than the system itself. Rather than blindly embracing the model of the rational, self-interested agent, Islam requires agents themselves to be moral. The structures in place matter far less than how we as individuals interact within them.

As I continue to explore the world-building factory of web3, these teachings seem all the more pressing.

Prophet Muhammad (S) was a merchant. Even before divine revelation, Muslims believe that Muhummad’s character and composure was worth striving toward.

He was known throughout Mecca as Al-Amin and Al-Sadiq, the trustworthy and the truthful. He was easy in trade, and charitable with his profits. There are hundreds of hadith from the life of the Prophet (S) where he preaches fairness and productivity in markets.

Islamic economics doesn’t assert an ideology. Arguing that Islam is capitalist or socialist doesn’t really make sense – there are principles, but those principles can fit within a variety of systems.

For example, while Islam places a strong emphasis on charity and redistribution, there is no explicit limitation on wealth. In fact, the Prophet (S) is recorded to have said, “Lawful wealth is excellent for the righteous man.” While hoarding wealth can be a means of straying further from Allah, spending it for good can make wealth a blessing. Even Islam’s prohibition of interest is rooted in the idea that we should not exploit those with less money, maintaining a focus on interpersonal interactions.

All of this is to say that Islam takes a very values-based approach to economics, emphasizing the importance of the individuals within the system rather than the system itself. Rather than blindly embracing the model of the rational, self-interested agent, Islam requires agents themselves to be moral. The structures in place matter far less than how we as individuals interact within them.

As I continue to explore the world-building factory of web3, these teachings seem all the more pressing.