Flare
FLR#80FLR is the native coin of Flare, a blockchain with built-in price and cross-chain data.
- Market cap
- $640.88M
- Volume 24h
- $4.85M
- All-time high
- $0.1501
- −95.09% from ATH
- Circulating supply
- 86.95B
Does not clear all 8 Shariah criteria. Needs caution: nature of the asset, gambling (maysir), business model, excessive uncertainty (gharar), and usage.
- 3 pass
- 5 caution
- 0 fail
Verdict history
- DoubtfulCurrent
First publication
Fundamentals, market picture and news will appear here.
Halal analysis
Can a Muslim hold Flare?8 Shariah criteria
3 pass · 5 caution · 0 failHolding FLR pays nothing; delegation and staking rewards are paid from issuance for oracle and validation work, and vary with performance.
Riba is interest or any guaranteed increase on a loan. Simply holding FLR earns nothing. Holders can wrap FLR (WFLR) and delegate its vote power to data providers who run the FTSO oracle and the Flare Data Connector; the tokens stay in the holder's wallet, and rewards are shared by delegated weight. Providers that miss minimal participation requirements can lose rewards for an epoch, so the return is not guaranteed. Holders can also stake on the P-chain with validators: stake is locked for the chosen period (minimum two months under FIP.05) and validators need over 80% uptime to earn.
Rewards are funded mainly by inflation (cut from 5% to 3% a year by FIP.16), and FIRE revenue may later replace part of them. Some scholars see delegation as borderline because the delegator does no work himself and the principal is not at risk. The FlareDrops paid to WFLR holders until 30 January 2026 were a distribution of the original airdrop pool, not a lending return. CryptoUmmah likewise treats delegation as a non-custodial agency arrangement with variable rewards.
Flare is a working network and FLR has clear uses, but official religious bodies disagree on whether cryptocurrency is property (mal).
Mal is property that Islamic law recognises as having value and that can be owned and traded. Flare works: FLR pays gas, secures the network through staking, is delegated to oracle providers, pays for data attestations and backs FAssets agents. In January 2026 Flare reported about 860,000 active addresses and about 500,000 daily transactions. Malaysia's Securities Commission Shariah Advisory Council (2020), for assets under its supervision, treats digital currency without an underlying asset as goods ('urudh) that may be traded on registered exchanges.
Other tier-1 bodies disagree: Egypt's Dar al-Ifta (2017), the UAE General Authority of Islamic Affairs (2018), Turkey's Diyanet (2017) and Indonesia's MUI (2021) prohibit dealing in cryptocurrencies, and the OIC Fiqh Academy (2019) deferred a ruling. None of them names Flare. Because authoritative bodies disagree, this criterion cannot be 'pass'.
- Resolutions of the Shariah Advisory Council of the SC - Securities Commission Malaysia
- Ruling on trading and dealing in Bitcoin - Dar al-Ifta al-Misriyyah
- Kripto paraların kullanımının dini hükmü nedir? - Din İşleri Yüksek Kurulu (Diyanet)
- Keputusan Ijtima' Ulama Komisi Fatwa se-Indonesia VII tentang Hukum Cryptocurrency - Majelis Ulama Indonesia
FLR is not a gambling token and most of its measured trading is spot, but trading is largely speculative and Flare promotes FXRP for options and perps.
Maysir is gambling: winning or losing by chance rather than through productive exchange. Ordinary price swings are not maysir, and FLR has no chance-based payout of its own. In a single-day snapshot on 27 September 2026, perpetuals were roughly 27% of combined FLR volume on Bybit, OKX and Kraken (Bybit's perpetual about $492,000 against about $597,000 spot; OKX listed no perpetual), so derivatives do not dominate as they do for larger coins. FLR has fallen about 95% from its January 2023 high, and trading is mostly short-term speculation rather than use.
In August 2026 Flare announced that FXRP can back XRP options and perpetuals on Derive, which ties the ecosystem to derivatives trading. A real function exists alongside this, so the status is caution.
Protocol fees are service fees, but the Foundation-run FIRE pool also takes MEV from lending liquidations and may fund dApp yield, and Foundation finances are undisclosed.
This criterion asks how the issuer or protocol earns. Gas fees are burned, and Flare Data Connector and FAssets fees are charges for services, which is permissible. Since FIP.16 (accepted 24 April 2026), these fees and captured MEV flow into FIRE, a pool run at first by the Flare Foundation. Its main stated use is buying back and burning FLR; it does not distribute revenue to holders. Two points keep this at caution.
First, the permitted MEV includes lending protocol liquidations, which draws income from interest-based lending markets, and Flare's April 2026 plan lets FIRE also 'increase yield or liquidity through dApps' and support the Foundation, so part of its spending could support interest-based products. Second, the Foundation does not publish what assets its treasury holds or its revenue mix, so the share of impermissible income cannot be checked against the 5% threshold. FIRE was small: Flare reported $44,632 accrued by 24 September 2026, so no share of revenue is shown to be impermissible above the thresholds.
Supply rules and governance are public, but about 20 billion FLR sits outside circulation, the Foundation controls FIRE, and tokenomics have changed several times.
Gharar is excessive uncertainty or hidden information in a deal. Much is public: inflation rules are set by on-chain governance proposals (FIP.01 in 2023, FIP.16 in 2026), transaction fees are burned, and the node software is open source. Several points remain unclear. CoinGecko shows about 106.6 billion FLR total but about 86.9 billion circulating, Flare's docs say the Flare Foundation holds about 9.8 billion FLR and the Flare VC Fund 10 billion FLR, which covers most of the gap, but no release schedule for these holdings was found.
The Flare Foundation controls FIRE at first, and holders can only move it to joint governance if 50% of the inflatable supply votes to do so. Tokenomics have changed materially three times (FIP.01, the 2.1 billion FLR burn plan and FIP.16), which makes future issuance less predictable.
Flare's oracle and data services are real infrastructure, but a large share of its DeFi activity is interest-based lending and yield vaults promoted by the Foundation.
This criterion looks at what the network is actually used for. The permissible part is clear: FTSO price feeds and the Flare Data Connector serve applications on Flare, and FAssets bring XRP onto the network. But of about 145 million FXRP minted by September 2026, about 130 million were deployed in DeFi, and Flare's own announcements focus on lending and yield: Kinetic lending markets, Morpho and Mystic lending on Flare, a Sentora RLUSD lending vault on Morpho that takes FXRP as collateral, and yield vaults such as earnXRP, built on Upshift and curated by Clearstar (over 32 million FXRP).
The exact share of interest-based lending in Flare's roughly $136 million of TVL was not broken down, so the status is caution rather than fail.
Fully paid spot FLR is available on major exchanges and can be held in one's own wallet.
This criterion asks whether the asset can be owned in a permissible way. FLR trades spot, with full payment and delivery, on exchanges such as Kraken, Bybit and OKX, and it can be withdrawn to a self-custody wallet. Institutional holders can also keep it with a custodian such as Hex Trust, which offers native staking. Binance did not list an FLR spot market on 27 September 2026, so the choice of large venues is narrower than for top coins, but permissible ownership does not depend on derivatives.
Flare provides decentralised data and cross-chain infrastructure; no large-scale fraud or abuse tied to the network was found.
Maslahah weighs public benefit against harm. The benefit is real if modest in scale: decentralised price feeds and verified cross-chain data reduce reliance on single data vendors, and FAssets let XRP holders use their coins in applications. No large-scale fraud, sanctions evasion or exploitation linked to Flare was found in the sources reviewed. The main harm is indirect: much ecosystem activity routes users toward interest-based lending and derivatives, which is counted under usage and maysir rather than again here.
Holders who received the January 2023 airdrop have seen large price losses, which reflects volatility rather than abuse.
How you can use it
Tap a card for the ruling and sourcesBuying FLR with full payment and immediate delivery is available on exchanges such as Kraken, Bybit and OKX, and coins can be moved to a self-custody wallet. Spot is acceptable for a DOUBTFUL asset for those who follow the permissive view.
No spot FLR exchange-traded fund was found as of 27 September 2026. If one appears, it should be assessed like spot, checking that it earns no interest and does not lend its FLR.
Tier-1 bodies such as Indonesia's MUI rule that using cryptocurrency as currency is not permissible, and paying with crypto is not allowed in Indonesia and is banned in Turkey. FLR is used mainly for gas and delegation rather than merchant payments.
Delegating wrapped FLR to oracle data providers keeps the tokens in your wallet, and P-chain staking locks FLR with a validator; in both cases rewards are paid for oracle and validation work and depend on performance, so they are rated pass. Liquid staking tokens such as sFLR and exchange staking are caution: they pool stake through an intermediary, and the receipt tokens are often deposited into interest-based lending markets.
Margin trading in FLR is never acceptable: it is a deferred exchange with borrowed money and leverage (AAOIFI SS 20).
FLR perpetuals (for example on Bybit) and XRP options and perps backed by FXRP always fail under AAOIFI SS 20: deferred exchange without delivery, usually with leverage.
Lending FLR or FXRP on platforms such as Kinetic or Morpho pays depositors interest from borrowers. This is riba.
Flare yield vaults built on lending, leveraged looping or fixed-rate trading pay interest or interest-like returns and fail. Delegation and native staking are assessed separately above; products that only pass on those rewards are closer to the staking assessment, but their source must be checked product by product.
Scholars quotes
Penggunaan cryptocurrency sebagai mata uang hukumnya haram, karena mengandung gharar (ketidakjelasan), dharar (bahaya) dan bertentangan dengan Undang-Undang nomor 7 tahun 2011 tentang Mata Uang dan Peraturan Bank Indonesia nomor 17 tahun 2015 tentang Kewajiban Penggunaan Rupiah di Wilayah Negara Kesatuan Republik Indonesia.Sebagaimana mata wang yang lain, mata wang digital hendaklah tidak digunakan sebagai bayaran kepada barangan, perkhidmatan dan aktiviti tidak patuh Syariah seperti pembelian dadah, pelacuran, perjudian dan pendanaan aktiviti keganasan serta penggubahan wang haram.The SAC has also resolved that investment and trading of Digital Assets that fulfil the above requirements and which are traded on Digital Asset Exchange (DAX) registered with SC are permissible.Third: In light of the above and given the significant risks associated with this type of currencies and the instability of their transactions, the Council of the Academy recommends pursuing research and studies on issues affecting its ruling.Bitcoin is a digital currency that does not meet the legal and Sharia criteria that make it a currency subject to the rulings of dealing with official legal currencies recognized internationally.بناءً على ذلك: فلا يجوز شرعًا تداول عملة "البتكوين" والتعامل من خلالها بالبيعِ والشراءِ والإجارةِ وغيرها، بل يُمنع من الاشتراكِ فيها؛ لعدمِ اعتبارِها كوسيطٍ مقبولٍ للتبادلِ من الجهاتِ المخُتصَّةِ، ولِمَا تشتمل عليه من الضررِ الناشئ عن الغررِ والجهالةِ والغشِّ في مَصْرِفها ومِعْيارها وقِيمتها، فضلًا عما تؤدي إليه ممارستُها من مخاطرَ عاليةٍ على الأفراد والدول.According to research and opinion of experts so far, cryptocurrency is not considered ‘ maal ’ (wealth) in Sharia.Muhammadiyah memandang transaksi dan investasi kripto pada dasarnya mubah (boleh) tetapi dengan syarat tertentu.The opinion on this is the same as doing the same with any halal assets such as shares – 1) is permissible, 2) is more debatable and there are differing opinions on short-term trading.Our current position is 'tawaquf'; we can't say it is halal or haram, but we say it is better not to engage in itAs I mentioned at the beginning of this article it is not necessary to substantiate the permissibility of something as long as there are no prohibited factors involved in it or surrounding it.AI-assisted analysis checked against sources. Not a fatwa or investment advice.
Where it trades
No exchanges from our coverage trade Flare yet
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