The first generation of cryptocurrencies, including Bitcoin, Litecoin and others, rely entirely on altruism to continue their development. Some developers donate their time while others get paid for their work through donations from private sources. In Bitcoin, for example, there is an army of part-time volunteer developers but it also has some full-time developers. They are funded by private donations (collected and distributed by MIT) and by a private company called Blockstream.
Cryptotip # 2: Other crypto projects are funded by a large initial allocation. Mostly, these funds came from an Initial Currency Share (ICO), in which coins or tokens of the project or some or all of them were sold before development. Ethereum’s initial and continuing development was funded in this way; The project now has an allocation of nearly $ 1 billion (at current prices).
Cryptotip # 3: A relatively new development is a self-funded blockchain. Digital currency Dash pioneered this method in 2015, and other projects followed suit. Using this funding model, a certain percentage of block remuneration is held and paid at the end of the month for community-approved Blockchain projects. At current prices, this gives Dash a $ 5 million monthly budget or $ 60 million a year.