diff --git a/node/devs.go b/node/devs.go
new file mode 100644
index 0000000..0fc674e
--- /dev/null
+++ b/node/devs.go
@@ -0,0 +1,35 @@
+package node
+
+// Special structure for the Developer rewards
+type DevReward struct {
+	DevGroup     string  // group or information about reward
+	DevAddress   string  // FCT address where to send developer reward
+	DevRewardPct float64 // % from total development rewards
+}
+
+// Hardcode developers who work active on PegNet to avoid manipulations from config files
+//
+// contains the percentage distribution of the total 2000
+// defined in `pegnet` repo `modules/conversions/conversionlimit.go` as PerBlockDevelopers
+//
+// TODO: in v2.5 move into special Developer Rewards Chain (DRC)
+var (
+	DeveloperRewardAddreses = []DevReward{
+		{"Listing Tech Support", "FA2i9WZqJnaKbJxDY2AZdVgewE28uCcSwoFt8LJCMtGCC7tpCa2n", 10.00},
+		{"Architecture Dev for PegNet 2.5", "FA37cGXKWMtf2MmHy3n1rMCYeLVuR5MpDaP4VXVeFavjJCJLYYez", 9.0},
+		{"Trading Bots Work", "FA2wDRieaBrWeZHVuXXWUHY6t9nKCVCCKAMS5xknLUExuVAq3ziS", 9.0},
+		{"Mining Pool Support / Dev/ Infra Hosting/ Gateway Operation", "FA3LDEA5fcskV6ZoFpKE84qPcjd7GYjEnswGHMZXL1V9d14wmgh3", 9.0},
+		{"Media Tech Support", "FA381EygeEXjZzB6hNvxbE4oSUzHZMfvGByMZoW5UrG1gHEKJcNK", 8.0},
+		{"Social Coverage User Support", "FA2DxkaTx1k2oGfbTqvwVMScSHHac7JFRiBjRngjRnqQpeBxsLhA", 8.0},
+		{"pTrader + PIPs", "FA2Ersb227gn7eWJ2HPsHZ5QqxfMBZhSjwixQ44dAS17CtRXSDRU", 8.0},
+		{"Desktop Wallet + PIPs", "	FA2eFEVUzTQZxNp3LYYgjPaaHUfGmuvShhtBdGB2BBWMeByPCmJy", 8.0},
+		{"DeFi Integrations + PIPs Work", "FA2z6Nnaj8a5nXmwZD8tYhDENAx8ciVE3xeNeixKiFj22vZEZEdT", 8.0},
+		{"Explorer + Mobile", "	FA2T72oxBxXvnujNdsVUshqFM2qV1W4nJy33nkrpxbYQV8rFbUPP", 5.0},
+		{"Prosper / Staking GUI Upgrades", "FA2cEaq1GdGfFjhymiTEzW24DocZFZHNBqe9qkT18YPaL5ZzsgRi", 5.0},
+		{"Payment Intergrations Work", "FA2YhZBZbc4V858ao7dJuAqRC4iwA3MrbZs7BHUPK7Mq19yYdMwZ", 3.0},
+		{"General Development Tasks", "FA3PYuvrsDvkhnekokVNrgLn7JiL5pChSBTtR9gZB1mVGFVB7JRD", 3.0},
+		{"Gateway Ethereum Upgrade", "FA2Wy7AzeoBuaXYnGu67xa5zdNkmqTbPryUgpy7qVPvj46GRZkep", 2.0},
+		{"Statistics & Visualizations of PegNet", "FA3dsCiKGzwrTALfX4T2CKv8wCmNMxwJx3jS4jz1ST9fwge9Wrnm", 2.0},
+		{"Trading Tech Support", "FA2a2nXgkBg7pL5wrgm99rLZDGFs2T8jfTgMuia6ep8ZMkVtPe8E", 3.00},
+	}
+)
diff --git a/node/pegnet/txhistory.go b/node/pegnet/txhistory.go
index a739ab9..5d6182a 100644
--- a/node/pegnet/txhistory.go
+++ b/node/pegnet/txhistory.go
@@ -451,6 +451,65 @@ func (p *Pegnet) InsertStakingCoinbase(tx *sql.Tx, txid string, height uint32, h
 	return nil
 }
 
+func (p *Pegnet) InsertDeveloperRewardCoinbase(tx *sql.Tx, txid string, addTxid string, height uint32, heightTimestamp time.Time, payout uint64, faAdd factom.FAAddress) error {
+	txidBytes, err := hex.DecodeString(txid)
+	if err != nil {
+		return err
+	}
+
+	// 	First we need to record the batch. The batch is the entire set of transactions, where
+	// 	each tx is a deverloper reward.
+	stmt, err := tx.Prepare(`INSERT INTO "pn_history_txbatch"
+                (entry_hash, height, blockorder, timestamp, executed) VALUES
+                (?, ?, ?, ?, ?)`)
+	if err != nil {
+		return err
+	}
+
+	// The Entryhash is the custom txid, it is not an actual entry on chain
+	// The executed height is the same height as the recorded.
+	_, err = stmt.Exec(txidBytes, height, 0, heightTimestamp.Unix(), height)
+	if err != nil {
+		return err
+	}
+
+	// Now we record each developer reward.
+
+	// All addresses are stored as bytes in the sqlitedb
+	add := faAdd[:]
+	// index for the address
+	index, _, err := SplitTxID(addTxid)
+	if err != nil {
+		return err
+	}
+
+	// Insert each payout as a coinbase.
+	// Insert the TX
+	coinbaseStatement, err := tx.Prepare(`INSERT INTO "pn_history_transaction"
+		            (entry_hash, tx_index, action_type, from_address, from_asset, from_amount, to_asset, to_amount, outputs) VALUES
+		            (?, ?, ?, ?, ?, ?, ?, ?, ?)`)
+	if err != nil {
+		return err
+	}
+
+	_, err = coinbaseStatement.Exec(txidBytes, index, Coinbase, add, "", 0, "PEG", payout, "")
+	if err != nil {
+		return err
+	}
+
+	// Insert into lookup table
+	lookup, err := tx.Prepare(insertLookupQuery)
+	if err != nil {
+		return err
+	}
+
+	if _, err = lookup.Exec(txidBytes, index, add); err != nil {
+		return err
+	}
+
+	return nil
+}
+
 // Special construction to nullify burn address
 func (p *Pegnet) InsertZeroingCoinbase(tx *sql.Tx, txid string, addTxid string, height uint32, heightTimestamp time.Time, payout uint64, asset string, faAdd factom.FAAddress) error {
 	txidBytes, err := hex.DecodeString(txid)
diff --git a/node/sync.go b/node/sync.go
index f72f614..a6aef03 100644
--- a/node/sync.go
+++ b/node/sync.go
@@ -362,6 +362,15 @@ func (d *Pegnetd) SyncBlock(ctx context.Context, tx *sql.Tx, height uint32) erro
 		}
 	}
 
+	// 5) Apply Developers Rewards
+	if height >= V20HeightActivation && height%pegnet.SnapshotRate == 0 {
+		err := d.DevelopersPayouts(tx, fLog, height, dblock.Timestamp, DeveloperRewardAddreses)
+		if err != nil {
+			// something wrong happend during payout execution
+			return err
+		}
+	}
+
 	return nil
 }
 
@@ -484,6 +493,67 @@ func (d *Pegnetd) SnapshotPayouts(tx *sql.Tx, fLog *log.Entry, rates map[fat2.PT
 	return nil
 }
 
+// Developers Reward Payouts
+// implementation of PIP16 - distributed rewards collected for developers every 24h
+func (d *Pegnetd) DevelopersPayouts(tx *sql.Tx, fLog *log.Entry, height uint32, heightTimestamp time.Time, developers []DevReward) error {
+
+	totalPayout := uint64(conversions.PerBlockDevelopers) * pegnet.SnapshotRate // once a day
+	payoutStart := time.Now()
+
+	// We need to mock a TXID to record dev rewards
+	txid := fmt.Sprintf("%064d", height)
+
+	// we use hardcoded list of dev payouts
+	i := 0
+	for _, dev := range developers {
+
+		// we calculate developers reward from % pre-defined
+		rewardPayout := uint64((conversions.PerBlockDevelopers / 100) * dev.DevRewardPct)
+		addr, err := factom.NewFAAddress(dev.DevAddress)
+
+		_, err = d.Pegnet.AddToBalance(tx, &addr, fat2.PTickerPEG, rewardPayout)
+		if err != nil {
+			return err
+		}
+
+		// Mock entry hash value
+		addTxid := fmt.Sprintf("%d-%s", i, txid)
+		i++
+
+		// Get dev address as FAAdress
+		FADevAddress, err := factom.NewFAAddress(dev.DevAddress)
+		if err != nil {
+			log.WithFields(log.Fields{
+				"error": err,
+				"addr":  dev.DevAddress,
+			}).Info("error getting developer address")
+			return err
+		}
+
+		// ---- Database Payouts ----
+		// Inserts tx into the db
+		err = d.Pegnet.InsertDeveloperRewardCoinbase(tx, txid, addTxid, height, heightTimestamp, rewardPayout, FADevAddress)
+		if err != nil {
+			return err
+		}
+
+		fLog.WithFields(log.Fields{
+			"total":     float64(totalPayout) / 1e8,
+			"developer": len(dev.DevAddress),
+			"PEG":       float64(rewardPayout) / 1e8, // Float is good enough here
+		}).Info("developer reward | paid out to")
+
+	}
+
+	fLog.WithFields(log.Fields{
+		"total":   float64(totalPayout) / 1e8,
+		"elapsed": time.Since(payoutStart),
+		"txid":    txid,
+	}).Info("developer rewards | paid out")
+
+	return nil
+}
+
 func multiFetch(eblock *factom.EBlock, c *factom.Client) error {
 	err := eblock.Get(nil, c)
 	if err != nil {