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MANTRA

MANTRA (MANTRA)

AI Assisted Shariah Verdict
Last Update: 8/2/2026
Doubtful

SUMMARY

MANTRA operates as a neutral Layer 1 blockchain for RWA tokenization, and its native token has permissible utility for gas and Proof-of-Stake validation. However, the protocol's MANTRA Finance arm operates an interest-bearing money market and integrates yield-bearing Treasury products. Because the exact share of revenue derived from these non-compliant sources is unknown, the asset is classified as Doubtful.

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Verdict by Activity

How you can hold and use MANTRA

Buy & Hold

Doubtful

While the token has permissible utility as a native Layer 1 asset, the protocol's operation of an interest-bearing money market and the unknown share of non-compliant revenue render the holding doubtful.

Native Staking

Optional
Halal

Holders can delegate MANTRA tokens to network validators to secure the Proof-of-Stake blockchain, earning rewards funded by inflation and transaction fees.

Money Market Lending

Optional
Haram

MANTRA Finance operates a money market protocol where users can supply crypto assets to earn interest and borrow assets.

USDY Treasury Yield

Optional
Haram

The protocol natively integrates and incentivizes Ondo's USDY, an interest-bearing tokenized US Treasury note.

Shariah Component Breakdown

Shariah Analysis

Infrastructure — where it runs

Passed

MANTRA operates on its own Layer 1 blockchain, which serves as neutral, general-purpose infrastructure.

Application — what it does

Caution

The protocol operates as a Layer 1 blockchain for RWA tokenization, but its MANTRA Finance arm operates a money market protocol and incentivizes interest-bearing US Treasury products. Additionally, the exact composition of tokenized assets and potential haram industry exposure is unknown.

Asset — what you own

Passed

The token's primary utility is for network transaction fees (gas), on-chain governance, and native Proof-of-Stake validation, which are permissible.

Property Status (Māl)

Passed

The MANTRA token is a native protocol position with confirmed lawful use for gas and staking. The supply is ascertainable, and holders have self-custody and transferability.

Revenue Purity

Caution

The protocol generates revenue from permissible gas and DEX fees, but also from MANTRA Finance's interest-bearing money market products. The exact share of revenue derived from these Shariah-problematic sources is unknown.

Legitimacy & Security

project audits

Passed

The project has undergone a security audit by Hacken.

whitepaper

Passed

Official documentation and tokenomics are available and confirmed by research.

social presence

Caution

Not covered by research.

Team & Ecosystem

team background

Caution

Not covered by research.

Detailed Shariah Report

Overview

MANTRA is a Layer 1 blockchain designed to provide regulatory-compliant infrastructure for the tokenization of real-world assets (RWAs) like real estate and securities. Its native token is used to pay network transaction fees, participate in on-chain governance, and secure the network through Proof-of-Stake validation.

Why This Verdict

The Shariah compliance of MANTRA is evaluated across three layers: the underlying infrastructure, the application it serves, and the asset itself. The infrastructure passes as a neutral, general-purpose Layer 1 blockchain, meaning hosting other applications does not inherently taint the native asset. The token also qualifies as recognized digital property (Mal) because it is a native protocol position with an ascertainable supply, self-custody, transferability, and genuine lawful use for gas fees. However, the verdict on simply buying and holding the MANTRA token is Doubtful. While the token has permissible utility, the protocol's MANTRA Finance arm operates an interest-bearing money market and integrates yield-bearing US Treasury products (Ondo's USDY). Because the exact share of protocol revenue derived from these non-compliant sources is unknown, holding the asset carries significant Shariah risk. Beyond holding, users can opt into specific mechanisms with distinct rulings. Native staking to secure the network is Halal, as rewards are funded by an 8% inflation rate and transaction fees. Conversely, participating in the MANTRA Finance money market lending or the USDY Treasury yield program is Haram, as both involve earning interest (Riba).

Permissible Aspects

  • The underlying Layer 1 blockchain serves as neutral, general-purpose infrastructure.
  • The native token has genuine lawful utility for paying network transaction (gas) fees and participating in on-chain governance.
  • Opt-in native staking is permissible, as rewards are funded by network inflation and transaction fees rather than interest.
  • The protocol generates permissible revenue from network gas fees and decentralized exchange (DEX) trading fees.

Points of Caution

  • !MANTRA Finance operates a money market protocol where users lend and borrow crypto assets for interest, which is a direct exposure to Riba.
  • !The protocol natively integrates and incentivizes Ondo's USDY, an interest-bearing tokenized US Treasury note.
  • !The exact percentage of protocol revenue derived from these non-compliant, interest-bearing sources is unknown, casting doubt on the overall revenue purity.
  • !While the chain hosts general RWAs, it is permissionless, meaning the exact composition of all tokenized assets is not fully restricted and could potentially include haram industries.
  • !It is not publicly disclosed whether the project's own treasury earns interest from conventional banks or DeFi lending.

Purification Note

Because the exact share of the protocol's revenue derived from the interest-bearing MANTRA Finance money market is unknown, calculating a precise purification rate for holding the token is not currently possible. If an investor chooses to hold the token despite its Doubtful status, they should exercise caution and consult a qualified scholar regarding potential purification of any capital gains. Furthermore, any income directly earned by opting into the Haram money market lending or USDY Treasury yield programs is entirely non-compliant and must be fully donated to charity without expectation of spiritual reward.

BOTTOM LINE

MANTRA offers a neutral Layer 1 blockchain for real-world asset tokenization with a native token that qualifies as recognized digital property. However, the protocol's direct operation of an interest-bearing money market and integration of yield-bearing Treasury products make its revenue purity highly questionable. Due to the unknown share of non-compliant revenue, the asset is classified as Doubtful, though its native Proof-of-Stake staking mechanism remains permissible. Please note that final religious authority rests with a qualified scholar.

How this verdict was reached

This is not an opinion issued by ShariaQuant. It is the output of a documented screening methodology applied to researched facts about MANTRA (MANTRA), and every row above states the specific evidence that drove it — so the reasoning can be examined rather than taken on trust.

The framework screens three layers — the infrastructure an asset runs on, the application it serves, and the asset itself — and separately tests whether the token qualifies as recognised property (māl): that it presently exists, has an ascertainable supply, can be held and transferred, and carries a genuine lawful use. A failure at any single layer fails the asset.

Revenue-purity thresholds follow the AAOIFI screening standard: non-compliant income below 5% of revenue is tolerated and purified, while 5% or above fails the screen.

AAOIFI has not reviewed, approved or endorsed this report or ShariaQuant, and no scholar named in our methodology has reviewed this individual verdict. This is analysis, not a fatwa — final religious authority rests with a qualified scholar.