In the cryptocurrency world, developer’s fee is a percentage of the mining rewards that is automatically allocated to specified coin addresses.

 

How to find out for this tax?

Usually, the developers of a coin are mentioning this percentage and the time frame that this process of accumulation is going to take effect. In any case, the tax is written in the core code of a digital coin and its effect can be easily tracked in its blockchain explorer.

Developer fee or tax crypto

 

Why Developer Fees could be tricky.

The potential investors and miners should be very careful with the possible developer fees. Some cryptocurrency projects may have set a really high percentage of the  block reward as developer tax.

At the same time, this percentage is decided by the developers and these coins are not always used for the support of the project. So the transparency for this model is not always guaranteed. This way the miners of a digital coin could easily find themselves losing a great part of the potential mining rewards. Many times, this takes place without any good reason at all, as the developers of the project spend the collected fees for themselves and not for the project.

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