Question regarding fees and rewards in crypto

If my (or any of the holders) performs a transaction (whether it be buying, selling, swapping) we get taxed a small fee, but then that fee gets distributed ‘evenly’ and ‘fairly’ to the rest of holders, is this considered Riba or is this a form of revenue sharing?

Also, if any of the scholars could give me a straight forward but relatively depth definition of Riba that would be very much appreciated.

JazakAllahu Khayr

Did you get an answer on this?

Nope. Still waiting for a reply.

I also want to know abouth this.


May Allah bless you.

1)It depends on what the fee represents. and the structure of the transaction

  1. It depends on the cryptoassets involved in the transaction.

For more info on what is riba please click on this link:

Kind regards

What if it like this:

  • The smartcontract of the coin/token charges additional (let say 10%) fee in total for each transaction.
  • some of the fees (let say 4%) will be sent to the developer wallet that can be used to maintain and develop the coin ecosystem,
  • some (let say 1%) fee is for community reward or charity
  • some (let say 5%) fee will be distributed to all holders proportionally to their token balance (Passive income for all holders) as an incentive to hold the token.
  • The token otself may have utility or not

Is it halal or haram to get the passive income like this?

This kind of tokenomics is very common nowadays, often called as reflection rewards. I also wanted to know the ruling of this.

Technically we can see the token holder as owner of some percentage of the network, and anyone transacting in the network must paid some fee, similar to anyone who uses any electronic payment system charged with transaction fee, thus as owner of the network, token holders gets some percent of the revenue of the network automatically via smart contract.

The protocol needs screening correctly.

Unfortunately, we don’t screen tokens on this platform. We can only give some generic answers.