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The first time yeah. No, it's actual electricity, it's been discussed in many threads. I'll find one of them after I post this. No, that's a misconception. Lightning Flame Dragon Mode actually just stayed with Natsu for the rest of the series and he could use it whenever he wanted. For the God Slayer's flames, he wasn't damaged because he ate the flames but because Zancrow was beating Natsu up and was about to kill him before Natsu figured out the trick. It's shown with Sting that going into the fused mode actually makes you more energized.