# Rotating Savings (Jamiyyat): A Transparent Digital Model

## Introduction to Rotating Savings (Jamiyyat)

Rotating savings, known in the Arab world as 'Jamiyyat', is a traditional system where a group of individuals contributes a fixed monthly amount, and each member receives the pooled sum on a rotating basis. This model fosters financial cooperation and helps achieve savings goals without resorting to interest-based loans. In Islamic finance, rotating savings are permissible (halal) because they are free from interest (riba) and uncertainty (gharar), based on the principle of mutual assistance.

## Problems with Traditional Models

Despite the benefits, traditional rotating savings suffer from significant issues such as lack of transparency, as the system relies on personal trust among members. There are also risks of default, lack of legal guarantees, and difficulty tracking payments. These problems often lead to disputes and failure of some groups.

## How Blockchain Solves These Problems

Blockchain technology, such as that used on the Base network, offers a solution through smart contracts that automatically execute rules with full transparency. Every transaction is recorded on the chain and is immutable, ensuring trust and transparency. Smart contracts can precisely determine the order of members and distribute funds according to agreed rules, adhering to Islamic principles of no riba and no gharar.

## Islamic Finance Principles in the Digital Model

Qist's digital rotating savings model adheres to Islamic finance principles: the seller owns the asset (here, membership is considered a benefit), members pay in USDC stablecoin, and there is no riba or gharar. Any surplus is returned to members according to agreed rules, with a 3-day grace period for payments before any action. The fee is only 2% to cover costs.

## How Qist Implements This

Qist uses an open-source smart contract, verified on BaseScan, to create a transparent digital rotating savings group. Users join, contribute equal amounts of USDC, and the order of receiving the pool is determined randomly or by agreed criteria. The smart contract tracks all contributions and payments, ensures timely repayment, and automatically returns any surplus. Anyone can monitor the contract on BaseScan.