Is this crypto halal? Shariah screening report
None
UMA
- Price
- $0.368347
- Market cap
- $33.49M
- Circulating supply
- 90,912,300.667
- 24h change
- 1.01%
Report generated 8/27/2026, 6:34:28 PM · stored corpus assessment · confidence 88%
Crypto Halal Report Criteria
We use a disciplined framework to determine if a digital asset is Comfortable from a sharia perspective, based on three core pillars.
Purpose & Real-World Value Clear
UMA is an Ethereum-based protocol that enables the creation of synthetic assets and financial contracts on the blockchain. The UMA token serves as a governance token for the protocol, allowing holders to vote on protocol parameters and participate in the Data Verification Mechanism (DVM).
Honesty & Founder Intent Clear
The token distribution includes allocations to the team, investors, and the community, with vesting schedules in place for team and investor tokens. A significant portion of tokens is allocated for community incentives and protocol growth.
Dealing with Risk & Speculation Clear
Speculative trading of a real asset is treated as trade, not gambling, under the screening framework.
Crypto Overview
Purpose and Utility
UMA is an Ethereum-based protocol that enables the creation of synthetic assets and financial contracts on the blockchain. The UMA token serves as a governance token for the protocol, allowing holders to vote on protocol parameters and participate in the Data Verification Mechanism (DVM).
Current Usage
UMA has established partnerships with various DeFi projects and continues to see adoption in creating synthetic assets. The protocol has processed numerous price requests through its DVM system, demonstrating active usage of its core functionality.
Business Model
The protocol's primary function is to enable the creation of synthetic assets that track real-world assets' prices without requiring direct ownership of those assets. Token holders participate in securing the protocol by voting on price disputes and protocol upgrades.
Development Activity
The project maintains active development on GitHub, with regular updates and improvements to the protocol. The team continues to expand the protocol's capabilities and has introduced new features such as the Optimistic Oracle and Long Short Pairs (LSP) contracts.
Token Distribution
The token distribution includes allocations to the team, investors, and the community, with vesting schedules in place for team and investor tokens. A significant portion of tokens is allocated for community incentives and protocol growth.
Rating Justification
ComfortableFrom a Shariah compliance perspective, UMA's core functionality of enabling synthetic asset creation and governance participation represents a legitimate utility. The protocol involves actual asset ownership (UMA tokens) and provides real value through its governance and oracle services. While some synthetic assets created through UMA might individually raise Shariah concerns (such as interest-bearing synthetics), the base protocol and token itself do not inherently violate Islamic principles. The governance utility and verification mechanism represent legitimate use cases.
While we find this token comfortable to invest in from a Shariah-screening perspective, this does not imply we think it is a strong investment.
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Disclaimer: These reports are findings of AI analysis and cannot be guaranteed to be accurate. Ratings reflect opinions derived from automated criteria applied to the sources you submitted and a corpus of prior assessments. This is not a fatwa and does not determine Islamic law. Ratings may change as projects evolve. Always conduct your own research before investing.
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