The Muhammadiyah’s Majelis Tarjih dan Tajdid (MTT) has recently released an official view regarding practices within the crypto industry, including derivatives trading, staking, and airdrop hunting, an activity that is popular among Indonesia’s crypto community.

In the fatwa document, Muhammadiyah provides legal assessments of several crypto-related activities that are widely used by investors and airdrop hunters. Interestingly, the practice of airdrop is considered generally permissible (mubah)as long as it meets certain conditions.

For the crypto community, especially airdrop hunters: this fatwa has become a widely discussed topic because it provides religious clarification from an Islamic jurisprudence (fiqh) perspective on activities that have become common in the Web3 ecosystem.

Legal Status of Airdrops According to Muhammadiyah

From the fiqh perspective presented by Muhammadiyah, airdrops are categorized as either hibah (a gift) or ju‘ālah (a reward for completing a task).

This means an airdrop is viewed as a free distribution from a crypto project to users, or as compensation for promotional activities and community participation.

Based on this framework, airdrops are considered permissible (mubah) with two main conditions.

1. Must Not Involve Invalid or Prohibited Acts

An airdrop becomes haram if the requirements to receive it involve activities that contradict Islamic principles.

Examples mentioned include:

• Promoting gambling platforms
• Spreading hoaxes or misinformation
• Creating fake or manipulative reviews
• Supporting projects that violate sharia principles

If such actions are required as part of participating in an airdrop, then the activity becomes impermissible.

2. Must Be Free From Elements of Riba (Usury)

Airdrops are also considered impermissible if participants are required to deposit funds that are later used by the organizers.

In fiqh muamalah, this situation can change the legal status of the funds from a deposit (wadīʿah) to a loan (qarḍ). If the organizers then use those funds for business activities, it could introduce elements of riba.

Therefore, airdrops that require participants to deposit funds in order to receive rewards are considered problematic under sharia law.

Crypto Activities Considered Haram

Besides discussing airdrops, the MTT Muhammadiyah fatwa also evaluates several popular activities in the crypto industry.

The following are considered not compliant with sharia principles:

• Futures, Margin, Leverage, and Derivatives → Haram
• Lending and Staking → Haram
• Retroactive Airdrops → Haram
• Memecoins / Degen Trading → Haram

This view is based on concerns over high speculation, uncertainty (gharar), or financial practices resembling riba.

Fatwas Are Not Binding on All Muslims

It is important to understand that fatwas issued by Muhammadiyah serve as religious guidance or legal advice, rather than binding law for all Muslims.

This means:

• Those who follow Muhammadiyah scholars may choose to adopt this fatwa as guidance in their crypto activities.
• Others who follow different scholars are free to follow those opinions.

In other words, the fatwa functions as a religious reference for those who choose to follow it, rather than a rule that obligates all Muslims.

Relevance for the Airdrop Community

For the airdrop hunting community in Indonesia, this fatwa suggests that airdrop participation is generally permissible, as long as it does not involve practices that violate sharia principles.

This means common activities such as:

• trying testnets
• using Web3 applications
• interacting with protocols
• participating in community campaigns

can still be carried out as long as they do not involve manipulation, fraud, or problematic financial practices.

Going forward, discussions around the legality of crypto in Islamic law will likely continue evolving alongside the rapid development of the Web3 industry.