diff --git a/daml/splice-amulet-test/daml/Splice/Scripts/TestAmuletRulesTransfer.daml b/daml/splice-amulet-test/daml/Splice/Scripts/TestAmuletRulesTransfer.daml
index 50d504a95b..e3066d2b1d 100644
--- a/daml/splice-amulet-test/daml/Splice/Scripts/TestAmuletRulesTransfer.daml
+++ b/daml/splice-amulet-test/daml/Splice/Scripts/TestAmuletRulesTransfer.daml
@@ -3,6 +3,7 @@
 
 module Splice.Scripts.TestAmuletRulesTransfer where
 
+import DA.Action (replicateA_)
 import DA.Assert
 import DA.Foldable (forA_)
 import DA.List
@@ -110,6 +111,7 @@ testUsageFees = do
     inputUnclaimedActivityRecordAmount = Some 0.0
     inputValidatorFaucetAmount = Some 0.0
     inputSvRewardAmount = 0.0
+    inputDevelopmentFundAmount = Some 0.0
     inputAmuletAmount = 100.0
     balanceChanges = Map.empty
     holdingFees = 0.0 -- no holding fees charged on transfer
@@ -574,5 +576,66 @@ testUnclaimedActivityRecordTransferInput = do
   (_, openRound) <- getLatestActiveOpenRound app
   let createFee = openRound.transferConfigUsd.createFee.fee * openRound.amuletPrice
   transferResult.summary.senderChangeAmount === amountToMint - createFee
+  transferResult.summary.inputUnclaimedActivityRecordAmount === Some amountToMint
+
+  pure ()
+
+testInputDevelopmentFundCoupon : Script ()
+testInputDevelopmentFundCoupon = do
+  defaultAppWithUsers@DefaultAppWithUsers{..} <- setupDefaultAppWithUsers
+  baseConfig <- getAmuletConfig app
+  -- Replace the default AmuletConfig with a 0.05% allocation for the development fund.
+  -- This configuration applies to the next open round.
+  replaceDevelopmentFundConfig app baseConfig (Some alice.primaryParty) (Some 0.05)
+
+  -- Run 3 issuances for the already open rounds without the development fund configuration.
+  -- No development fund coupons are minted.
+  replicateA_ 3 $ runNextIssuance app
+  -- Mint one development fund coupon per issuance (two total).
+  runNextIssuance app
+  runNextIssuance app
+  context <- getPaymentTransferContext app alice
+  [(cid1, coupon1), (cid2, coupon2)] <- query @UnclaimedDevelopmentFundCoupon app.dso
+  let totalAmount = coupon1.amount + coupon2.amount
+
+  -- Allocate a DevelopmentFundCoupon
+  now <- getTime
+  let expiresAt = addRelTime now (days 2)
+  AmuletRules_AllocateDevelopmentFundCouponResult
+    { developmentFundCouponCid, optUnclaimedDevelopmentFundCouponCid = None } <-
+      allocateDevelopmentFundCoupon app alice.primaryParty bob.primaryParty totalAmount expiresAt [cid1, cid2]
+
+  -- Unhappy - expiresAt has been reached
+  setTime $ addRelTime expiresAt (minutes 1)
+  submitMultiMustFail [bob.primaryParty] [app.dso] $
+    exerciseCmd context.amuletRules AmuletRules_Transfer with
+      transfer = Transfer with
+        sender = bob.primaryParty
+        provider = bob.primaryParty
+        inputs = [InputDevelopmentFundCoupon developmentFundCouponCid]
+        outputs = []
+        beneficiaries = None
+      context = context.context
+      expectedDso = Some app.dso
+  setTime now
+
+  -- Happy
+  transferResult <-
+    checkTransferMetadata app TxKind_MergeSplit bob.primaryParty $
+    checkBalanceChanges defaultAppWithUsers $
+      submitMulti [bob.primaryParty] [app.dso] $
+        exerciseCmd context.amuletRules AmuletRules_Transfer with
+          transfer = Transfer with
+            sender = bob.primaryParty
+            provider = bob.primaryParty
+            inputs = [InputDevelopmentFundCoupon developmentFundCouponCid]
+            outputs = []
+            beneficiaries = None
+          context = context.context
+          expectedDso = Some app.dso
+  (_, openRound) <- getLatestActiveOpenRound app
+  let createFee = openRound.transferConfigUsd.createFee.fee * openRound.amuletPrice
+  transferResult.summary.senderChangeAmount === totalAmount - createFee
+  transferResult.summary.inputDevelopmentFundAmount === Some totalAmount
 
   pure ()
diff --git a/daml/splice-amulet-test/daml/Splice/Scripts/TestDesignExample.daml b/daml/splice-amulet-test/daml/Splice/Scripts/TestDesignExample.daml
index 05ba573799..ccf1084c82 100644
--- a/daml/splice-amulet-test/daml/Splice/Scripts/TestDesignExample.daml
+++ b/daml/splice-amulet-test/daml/Splice/Scripts/TestDesignExample.daml
@@ -158,6 +158,7 @@ test_designExample= do
     inputUnclaimedActivityRecordAmount = Some 0.0
     inputValidatorFaucetAmount = Some 0.0
     inputSvRewardAmount = 0.0
+    inputDevelopmentFundAmount = Some 0.0
     inputAmuletAmount = refreshAmuletAmount + lockedAmuletAmount
     balanceChanges = Map.empty
     holdingFees
diff --git a/daml/splice-amulet-test/daml/Splice/Scripts/TestDevelopmentFundCoupon.daml b/daml/splice-amulet-test/daml/Splice/Scripts/TestDevelopmentFundCoupon.daml
new file mode 100644
index 0000000000..8b080c437e
--- /dev/null
+++ b/daml/splice-amulet-test/daml/Splice/Scripts/TestDevelopmentFundCoupon.daml
@@ -0,0 +1,190 @@
+-- Copyright (c) 2024 Digital Asset (Switzerland) GmbH and/or its affiliates. All rights reserved.
+-- SPDX-License-Identifier: Apache-2.0
+
+module Splice.Scripts.TestDevelopmentFundCoupon where
+
+import DA.Action (replicateA_)
+import DA.Assert
+import DA.Time
+import Daml.Script
+
+import Splice.Amulet
+import Splice.AmuletRules
+import Splice.Scripts.Util
+
+testAllocateDevelopmentFundCoupon : Script ()
+testAllocateDevelopmentFundCoupon = do
+  DefaultAppWithUsers{..} <- setupDefaultAppWithUsers
+  -- Replace the default AmuletConfig with a 0.05% allocation for the development fund.
+  -- No Fund manager configured.
+  -- This configuration applies to the next open round.
+  baseConfig <- getAmuletConfig app
+  replaceDevelopmentFundConfig app baseConfig None (Some 0.05)
+
+  -- Run 3 issuances for the already open rounds without the development fund configuration.
+  -- No development fund coupons are minted.
+  replicateA_ 3 $ runNextIssuance app
+  -- Mint one development fund coupon per issuance (two total).
+  runNextIssuance app
+  runNextIssuance app
+  now <- getTime
+  [(cid1, coupon1), (cid2, coupon2)] <- query @UnclaimedDevelopmentFundCoupon app.dso
+  let
+    totalAmount = coupon1.amount + coupon2.amount
+    unclaimedDevelopmentFundCouponCids = [cid1, cid2]
+    expiresAt = addRelTime now (days 2)
+    firstAllocationAmount = 10.0
+    secondAllocationAmount = totalAmount - firstAllocationAmount
+
+  -- Unhappy - DevelopmentFundCoupon cannot be allocated without a Development Fund manager configured
+  allocateDevelopmentFundCouponMustFail app alice.primaryParty bob.primaryParty firstAllocationAmount
+    expiresAt unclaimedDevelopmentFundCouponCids
+
+  -- Set 5% and Alice as the fund manager
+  replaceDevelopmentFundConfig app baseConfig (Some alice.primaryParty) (Some 0.05)
+
+  -- Unhappy - expiresAt is in the past
+  let invalidExpiresAt = addRelTime now (minutes (-1))
+  allocateDevelopmentFundCouponMustFail app alice.primaryParty bob.primaryParty firstAllocationAmount
+    invalidExpiresAt unclaimedDevelopmentFundCouponCids
+
+  -- Unhappy - controller must be the configured Development Fund manager (alice)
+  allocateDevelopmentFundCouponMustFail app bob.primaryParty bob.primaryParty firstAllocationAmount
+    expiresAt unclaimedDevelopmentFundCouponCids
+
+  -- Unhappy - insufficient amount to cover the requested allocation
+  allocateDevelopmentFundCouponMustFail app alice.primaryParty bob.primaryParty (totalAmount + 1.0)
+    expiresAt unclaimedDevelopmentFundCouponCids
+
+  -- Happy - Development Fund coupon allocated with UnclaimedDevelopmentFundCoupon leftover
+  AmuletRules_AllocateDevelopmentFundCouponResult
+    { developmentFundCouponCid, optUnclaimedDevelopmentFundCouponCid = Some leftOverUnclaimedDevelopmentFundCouponCid } <-
+    allocateDevelopmentFundCoupon app alice.primaryParty bob.primaryParty firstAllocationAmount
+      expiresAt unclaimedDevelopmentFundCouponCids
+  Some developmentFundCoupon <- queryContractId bob.primaryParty developmentFundCouponCid
+  developmentFundCoupon === DevelopmentFundCoupon with
+    dso = app.dso
+    beneficiary = bob.primaryParty
+    fundManager = alice.primaryParty
+    amount = firstAllocationAmount
+    expiresAt
+
+  -- Happy - Development Fund coupon allocated with no UnclaimedDevelopmentFundCoupon leftover
+  AmuletRules_AllocateDevelopmentFundCouponResult { developmentFundCouponCid, optUnclaimedDevelopmentFundCouponCid = None } <-
+    allocateDevelopmentFundCoupon app alice.primaryParty bob.primaryParty secondAllocationAmount
+      expiresAt [leftOverUnclaimedDevelopmentFundCouponCid]
+  Some developmentFundCoupon <- queryContractId bob.primaryParty developmentFundCouponCid
+  developmentFundCoupon === DevelopmentFundCoupon with
+    dso = app.dso
+    beneficiary = bob.primaryParty
+    fundManager = alice.primaryParty
+    amount = secondAllocationAmount
+    expiresAt
+
+  pure ()
+
+testWithdrawalOfDevelopmentFundCoupon : Script ()
+testWithdrawalOfDevelopmentFundCoupon = do
+  DefaultAppWithUsers{..} <- setupDefaultAppWithUsers
+  now <- getTime
+  let
+    amount = 42.0
+    expiresAt = addRelTime now (days 1)
+    fundManager = alice.primaryParty
+    beneficiary = bob.primaryParty
+    reason = "Some reason"
+
+  developmentFundCouponCid <- createDevelopmentFundCoupon app fundManager beneficiary amount expiresAt
+
+  -- Unhappy - expiresAt has been reached
+  setTime $ addRelTime expiresAt (minutes 1)
+  withdrawDevelopmentFundCouponMustFail fundManager reason developmentFundCouponCid
+
+  setTime now
+
+  -- Unhappy - invalid controller
+  withdrawDevelopmentFundCouponMustFail app.dso reason developmentFundCouponCid
+  withdrawDevelopmentFundCouponMustFail beneficiary reason developmentFundCouponCid
+
+  -- Happy
+  unclaimedDevelopmentFundCouponCid <- withdrawDevelopmentFundCoupon fundManager reason developmentFundCouponCid
+  Some unclaimedDevelopmentFundCoupon <- queryContractId app.dso unclaimedDevelopmentFundCouponCid
+  unclaimedDevelopmentFundCoupon === UnclaimedDevelopmentFundCoupon with
+    dso = app.dso
+    amount
+
+  pure ()
+
+testExpiryOfDevelopmentFundCoupon : Script ()
+testExpiryOfDevelopmentFundCoupon = do
+  DefaultAppWithUsers{..} <- setupDefaultAppWithUsers
+  now <- getTime
+  let
+    amount = 42.0
+    expiresAt = addRelTime now (days 1)
+    fundManager = alice.primaryParty
+    beneficiary = bob.primaryParty
+
+  developmentFundCouponCid <- createDevelopmentFundCoupon app fundManager beneficiary amount expiresAt
+
+  -- Unhappy - expiresAt has not been reached
+  expiresDevelopmentFundCouponMustFail app.dso developmentFundCouponCid
+
+  setTime $ addRelTime expiresAt (minutes 1)
+
+  -- -- Unhappy - invalid controller
+  expiresDevelopmentFundCouponMustFail fundManager developmentFundCouponCid
+  expiresDevelopmentFundCouponMustFail beneficiary developmentFundCouponCid
+
+  -- Happy
+  unclaimedDevelopmentFundCouponCid <- expiresDevelopmentFundCoupon app.dso developmentFundCouponCid
+  Some unclaimedDevelopmentFundCoupon <- queryContractId app.dso unclaimedDevelopmentFundCouponCid
+  unclaimedDevelopmentFundCoupon === UnclaimedDevelopmentFundCoupon with
+    dso = app.dso
+    amount
+
+  pure ()
+
+
+allocateDevelopmentFundCouponMustFail
+  : AmuletApp -> Party -> Party -> Decimal -> Time -> [ContractId UnclaimedDevelopmentFundCoupon]
+  -> Script ()
+allocateDevelopmentFundCouponMustFail app fundManager beneficiary amount expiresAt unclaimedDevelopmentFundCouponCids = do
+  [(amuletRulesCid, _)] <- query @AmuletRules app.dso
+  submitMultiMustFail [fundManager] [app.dso] do
+    exerciseCmd amuletRulesCid AmuletRules_AllocateDevelopmentFundCoupon with
+      unclaimedDevelopmentFundCouponCids
+      beneficiary
+      amount
+      expiresAt
+      fundManager
+
+createDevelopmentFundCoupon : AmuletApp -> Party -> Party -> Decimal -> Time -> Script (ContractId DevelopmentFundCoupon)
+createDevelopmentFundCoupon app fundManager beneficiary amount expiresAt =
+  submit app.dso do
+    createCmd DevelopmentFundCoupon with
+      dso = app.dso
+      beneficiary
+      fundManager
+      amount
+      expiresAt
+
+withdrawDevelopmentFundCoupon : Party -> Text -> ContractId DevelopmentFundCoupon -> Script (ContractId UnclaimedDevelopmentFundCoupon)
+withdrawDevelopmentFundCoupon fundManager reason developmentFundCouponCid =
+  (.unclaimedDevelopmentFundCouponCid) <$> submit fundManager do
+    exerciseCmd developmentFundCouponCid DevelopmentFundCoupon_Withdraw with reason
+
+withdrawDevelopmentFundCouponMustFail : Party -> Text -> ContractId DevelopmentFundCoupon -> Script ()
+withdrawDevelopmentFundCouponMustFail actor reason developmentFundCouponCid =
+  submitMustFail actor do
+    exerciseCmd developmentFundCouponCid DevelopmentFundCoupon_Withdraw with reason
+
+expiresDevelopmentFundCoupon : Party -> ContractId DevelopmentFundCoupon -> Script (ContractId UnclaimedDevelopmentFundCoupon)
+expiresDevelopmentFundCoupon dso developmentFundCouponCid =
+  (.unclaimedDevelopmentFundCouponCid) <$> submit dso do
+    exerciseCmd developmentFundCouponCid DevelopmentFundCoupon_DsoExpire
+
+expiresDevelopmentFundCouponMustFail : Party -> ContractId DevelopmentFundCoupon -> Script ()
+expiresDevelopmentFundCouponMustFail actor developmentFundCouponCid =
+  submitMustFail actor do
+    exerciseCmd developmentFundCouponCid DevelopmentFundCoupon_DsoExpire
diff --git a/daml/splice-amulet-test/daml/Splice/Scripts/TestLockAndAmuletExpiry.daml b/daml/splice-amulet-test/daml/Splice/Scripts/TestLockAndAmuletExpiry.daml
index f39dae024a..9d25a4e883 100644
--- a/daml/splice-amulet-test/daml/Splice/Scripts/TestLockAndAmuletExpiry.daml
+++ b/daml/splice-amulet-test/daml/Splice/Scripts/TestLockAndAmuletExpiry.daml
@@ -33,6 +33,7 @@ scaleAmuletConfig amuletPrice config = AmuletConfig with
   packageConfig = config.packageConfig
   transferPreapprovalFee = fmap (/ amuletPrice) config.transferPreapprovalFee
   featuredAppActivityMarkerAmount = fmap (/ amuletPrice) config.featuredAppActivityMarkerAmount
+  optDevelopmentFundManager = config.optDevelopmentFundManager
 
 test : Script ()
 test = script do
diff --git a/daml/splice-amulet-test/daml/Splice/Scripts/UnitTests/Issuance.daml b/daml/splice-amulet-test/daml/Splice/Scripts/UnitTests/Issuance.daml
index e32b7b3edb..5c391e4665 100644
--- a/daml/splice-amulet-test/daml/Splice/Scripts/UnitTests/Issuance.daml
+++ b/daml/splice-amulet-test/daml/Splice/Scripts/UnitTests/Issuance.daml
@@ -21,6 +21,7 @@ tickDuration = defaultAmuletConfig.tickDuration
 amuletPrice : Decimal
 amuletPrice = 0.005
 
+
 -- Issuance curve retrieval
 ---------------------------
 
@@ -66,6 +67,16 @@ expectedParameters_E1_0_0p5 = IssuingRoundParameters with
   unclaimedValidatorRewards = 7551.7503805175
   unclaimedAppRewards = 68395.2511415525
   unclaimedSvRewards = 0.0000000001
+  amuletsToIssueToDevelopmentFund = 0.0
+
+expectedParameters_E1_0_0p5_DevFund5 : IssuingRoundParameters
+expectedParameters_E1_0_0p5_DevFund5 =
+  expectedParameters_E1_0_0p5 with
+    issuancePerSvRewardCoupon = 5783.8660578387 -- decreased by ~5 % (expected linear scaling with 5 % fund allocation)
+    unclaimedValidatorRewards = 5649.1628614916 -- decreased by ~25 % (validator tranche near cap: small pool cut sharply reduces unclaimed remainder)
+    unclaimedAppRewards = 62687.4885844749 -- decreased by ~8.3 % (app tranche less constrained; closer to linear scaling)
+    unclaimedSvRewards = 0.0 -- decreased ~5 % (below rounding threshold)
+    amuletsToIssueToDevelopmentFund = 38051.7503805175
 
 expectedParameters_E1_0p5_1p5 : IssuingRoundParameters
 expectedParameters_E1_0p5_1p5 = IssuingRoundParameters with
@@ -77,6 +88,16 @@ expectedParameters_E1_0p5_1p5 = IssuingRoundParameters with
   unclaimedValidatorRewards = 15162.1004566210
   unclaimedAppRewards = 106447.0015220700
   unclaimedSvRewards = 0.000000004
+  amuletsToIssueToDevelopmentFund = 0.0
+
+expectedParameters_E1_0p5_1p5_DevFund5 : IssuingRoundParameters
+expectedParameters_E1_0p5_1p5_DevFund5 =
+  expectedParameters_E1_0p5_1p5 with
+    issuancePerSvRewardCoupon = 1735.1598173516 -- decreased by ~5 % (expected linear scaling with 5 % fund allocation)
+    unclaimedValidatorRewards = 12878.9954337899 -- decreased by ~15 % (validator tranche near cap: small pool cut sharply reduces unclaimed remainder)
+    unclaimedAppRewards = 98836.6514459665 -- decreased by ~10 % (app tranche less constrained; closer to linear scaling)
+    unclaimedSvRewards = 0.0 -- decreased ~5 % (below rounding threshold)
+    amuletsToIssueToDevelopmentFund = 19025.8751902588
 
 expectedParameters_E1_1p5_5 : IssuingRoundParameters
 expectedParameters_E1_1p5_5 = IssuingRoundParameters with
@@ -88,6 +109,16 @@ expectedParameters_E1_1p5_5 = IssuingRoundParameters with
   unclaimedValidatorRewards = 3746.5753424658
   unclaimedAppRewards = 72200.4261796042
   unclaimedSvRewards = 0.0
+  amuletsToIssueToDevelopmentFund = 0.0
+
+expectedParameters_E1_1p5_5_DevFund5 : IssuingRoundParameters
+expectedParameters_E1_1p5_5_DevFund5 =
+  expectedParameters_E1_1p5_5 with
+    issuancePerSvRewardCoupon = 361.4916286149 -- decreased by ~5 % (expected linear scaling with 5 % fund allocation)
+    unclaimedValidatorRewards = 2034.2465753425 -- decreased by ~45 % (validator tranche strongly cap-bound; small pool accentuates drop)
+    unclaimedAppRewards = 66302.4048706240 -- decreased by ~8.2 % (app tranche less constrained; close to linear scaling)
+    unclaimedSvRewards = 0.0000000016 -- minor rounding drift (below significance threshold)
+    amuletsToIssueToDevelopmentFund = 9512.9375951294
 
 expectedParameters_E1_5_10 : IssuingRoundParameters
 expectedParameters_E1_5_10 = IssuingRoundParameters with
@@ -99,6 +130,17 @@ expectedParameters_E1_5_10 = IssuingRoundParameters with
   unclaimedValidatorRewards = 0.0000000017
   unclaimedAppRewards = 19879.2694063927
   unclaimedSvRewards = 0.0
+  amuletsToIssueToDevelopmentFund = 0.0
+
+expectedParameters_E1_5_10_DevFund5 : IssuingRoundParameters
+expectedParameters_E1_5_10_DevFund5 =
+  expectedParameters_E1_5_10 with
+    issuancePerValidatorFaucetCoupon = 339.5662100457 -- decreased by ~5.6 % (slightly above 5 % due to faucet cap effects)
+    issuancePerSvRewardCoupon = 90.3729071537 -- decreased by ~5 % (expected linear scaling)
+    unclaimedValidatorRewards = 0.0 -- minor rounding drift (below significance threshold)
+    unclaimedAppRewards = 16597.3059360731 -- decreased by ~16.5 % (cap constraints amplify reduction)
+    unclaimedSvRewards = 0.0000000029 -- minor rounding drift (below significance threshold)
+    amuletsToIssueToDevelopmentFund = 4756.4687975647
 
 expectedParameters_E1_10plus : IssuingRoundParameters
 expectedParameters_E1_10plus = IssuingRoundParameters with
@@ -110,23 +152,45 @@ expectedParameters_E1_10plus = IssuingRoundParameters with
   unclaimedValidatorRewards = 0.0
   unclaimedAppRewards = 0.0000000152
   unclaimedSvRewards = 0.0000000023
+  amuletsToIssueToDevelopmentFund = 0.0
+
+expectedParameters_E1_10plus_DevFund5 : IssuingRoundParameters
+expectedParameters_E1_10plus_DevFund5 =
+  expectedParameters_E1_10plus with
+    issuancePerFeaturedAppRewardCoupon = 70.3246004566 -- decreased by ~6 % (slightly above 5 % since both featured and unfeatured tranches are below cap)
+    issuancePerValidatorFaucetCoupon = 140.7458143075 -- decreased by ~6.3 % (faucet below cap, reduced pool scales slightly more than linearly)
+    issuancePerSvRewardCoupon = 22.5932267884 -- decreased by ~5 % (expected linear scaling)
+    unclaimedAppRewards = 0.0000000084 -- decreased ~5 % (below rounding threshold)
+    unclaimedSvRewards = 0.0000000033 -- minor rounding drift (below significance threshold)
+    amuletsToIssueToDevelopmentFund = 2378.2343987823
+
+
 
 testE1 : Script ()
 testE1 = script do
   validateOpenMiningRoundSummary summaryExample1
 
+  -- 0% Development Fund
   expectedParameters_E1_0_0p5 === computeIssuingRoundParameters tickDuration amuletPrice issuanceConfig_0_0p5 summaryExample1
   expectedParameters_E1_0p5_1p5 === computeIssuingRoundParameters tickDuration amuletPrice issuanceConfig_0p5_1p5 summaryExample1
   expectedParameters_E1_1p5_5 === computeIssuingRoundParameters tickDuration amuletPrice issuanceConfig_1p5_5 summaryExample1
   expectedParameters_E1_5_10 === computeIssuingRoundParameters tickDuration amuletPrice issuanceConfig_5_10 summaryExample1
   expectedParameters_E1_10plus === computeIssuingRoundParameters tickDuration amuletPrice issuanceConfig_10plus summaryExample1
 
+  -- 5% Development Fund
+  -- Most parameters decrease by ~5%; larger deviations occur when issuance caps bind or rounding applies.
+  expectedParameters_E1_0_0p5_DevFund5 === computeIssuingRoundParameters tickDuration amuletPrice (withDevFund5 issuanceConfig_0_0p5) summaryExample1
+  expectedParameters_E1_0p5_1p5_DevFund5 === computeIssuingRoundParameters tickDuration amuletPrice (withDevFund5 issuanceConfig_0p5_1p5) summaryExample1
+  expectedParameters_E1_1p5_5_DevFund5 === computeIssuingRoundParameters tickDuration amuletPrice (withDevFund5 issuanceConfig_1p5_5) summaryExample1
+  expectedParameters_E1_5_10_DevFund5 === computeIssuingRoundParameters tickDuration amuletPrice (withDevFund5 issuanceConfig_5_10) summaryExample1
+  expectedParameters_E1_10plus_DevFund5 === computeIssuingRoundParameters tickDuration amuletPrice (withDevFund5 issuanceConfig_10plus) summaryExample1
+
 
 -- Example 2: all zeros
 -----------------------
 
-summaryExamplNoActivity : OpenMiningRoundSummary
-summaryExamplNoActivity = OpenMiningRoundSummary with
+summaryExampleNoActivity : OpenMiningRoundSummary
+summaryExampleNoActivity = OpenMiningRoundSummary with
   totalValidatorRewardCoupons = 0.0
   totalFeaturedAppRewardCoupons = 0.0
   totalUnfeaturedAppRewardCoupons = 0.0
@@ -143,12 +207,28 @@ expectedParameters_NoActivity_0_0p5 = IssuingRoundParameters with
   unclaimedValidatorRewards = 38051.7503805175
   unclaimedAppRewards = 114155.2511415525
   unclaimedSvRewards = 608828.0060882801
+  amuletsToIssueToDevelopmentFund = 0.0
+
+expectedParameters_NoActivity_0_0p5_DevFund5 : IssuingRoundParameters
+expectedParameters_NoActivity_0_0p5_DevFund5 =
+  expectedParameters_NoActivity_0_0p5 with
+    issuancePerSvRewardCoupon = 578386.6057838661 -- decreased by ~5 % (expected linear scaling; no coupons active)
+    unclaimedValidatorRewards = 36149.1628614916 -- decreased by ~5 % (fund allocation directly reduces total issuance)
+    unclaimedAppRewards = 108447.4885844749 -- decreased by ~5 % (expected linear scaling)
+    unclaimedSvRewards = 578386.6057838661 -- decreased by ~5 % (identical scaling since all rewards remain unclaimed)
+    amuletsToIssueToDevelopmentFund = 38051.7503805175
+
 
 testNoActivity : Script ()
 testNoActivity = script do
-  validateOpenMiningRoundSummary summaryExamplNoActivity
+  validateOpenMiningRoundSummary summaryExampleNoActivity
+
+  -- 0% Development Fund
+  expectedParameters_NoActivity_0_0p5 === computeIssuingRoundParameters tickDuration amuletPrice issuanceConfig_0_0p5 summaryExampleNoActivity
 
-  expectedParameters_NoActivity_0_0p5 === computeIssuingRoundParameters tickDuration amuletPrice issuanceConfig_0_0p5 summaryExamplNoActivity
+  -- 5% Development Fund
+  -- Most parameters decrease by ~5%; larger deviations occur when issuance caps bind or rounding applies.
+  expectedParameters_NoActivity_0_0p5_DevFund5 === computeIssuingRoundParameters tickDuration amuletPrice (withDevFund5 issuanceConfig_0_0p5) summaryExampleNoActivity
 
 
 -- Example 3: low activity
@@ -173,18 +253,31 @@ expectedParameters_E3_0_0p5 = IssuingRoundParameters with
   unclaimedValidatorRewards = 9511.7503805175
   unclaimedAppRewards = 104095.2511415525
   unclaimedSvRewards = 0.0000000001
+  amuletsToIssueToDevelopmentFund = 0.0
+
+expectedParameters_E3_0_0p5_DevFund5 : IssuingRoundParameters
+expectedParameters_E3_0_0p5_DevFund5 =
+  expectedParameters_E3_0_0p5 with
+    issuancePerSvRewardCoupon = 289193.302891933 -- decreased by ~5 % (expected linear scaling; SV tranche not capped)
+    unclaimedValidatorRewards = 7609.1628614916 -- decreased by ~20 % (validator tranche near cap, amplifying reduction)
+    unclaimedAppRewards = 98387.4885844749 -- decreased by ~5.5 % (mostly linear scaling)
+    amuletsToIssueToDevelopmentFund = 38051.7503805175
 
 testE4 : Script ()
 testE4 = script do
   validateOpenMiningRoundSummary summaryExample3
 
+  -- 0% Development Fund
   expectedParameters_E3_0_0p5 === computeIssuingRoundParameters tickDuration amuletPrice issuanceConfig_0_0p5 summaryExample3
 
+  -- 5% Development Fund
+  -- Most parameters decrease by ~5%; larger deviations occur when issuance caps bind or rounding applies.
+  expectedParameters_E3_0_0p5_DevFund5 === computeIssuingRoundParameters tickDuration amuletPrice (withDevFund5 issuanceConfig_0_0p5) summaryExample3
+
 
 -- Example 4: millions of SV reward weight
 -------------------------------------------
 
-
 summaryExampleLargeSvRewardWeight : OpenMiningRoundSummary
 summaryExampleLargeSvRewardWeight = OpenMiningRoundSummary with
   totalValidatorRewardCoupons = 0.0
@@ -203,13 +296,56 @@ expectedParameters_LargeSvRewardWeight_10plus = IssuingRoundParameters with
   unclaimedAppRewards = 35673.5159817352
   unclaimedValidatorRewards = 9512.9375951294
   unclaimedSvRewards = 0.0
+  amuletsToIssueToDevelopmentFund = 0.0
+
+expectedParameters_LargeSvRewardWeight_10plus_DevFund5 : IssuingRoundParameters
+expectedParameters_LargeSvRewardWeight_10plus_DevFund5 =
+  expectedParameters_LargeSvRewardWeight_10plus with
+    issuancePerSvRewardCoupon = 0.0009413844 -- decreased by ~5 % (expected linear scaling; SV weight dominates distribution)
+    unclaimedValidatorRewards = 9037.2907153729 -- decreased by ~5 % (linear with total issuance)
+    unclaimedAppRewards = 33889.8401826484 -- decreased by ~5 % (expected linear scaling)
+    unclaimedSvRewards = 0.0001188433 -- minor rounding drift (below significance threshold)
+    amuletsToIssueToDevelopmentFund = 2378.2343987823
 
 testLargeSvRewardWeight : Script ()
 testLargeSvRewardWeight = script do
-  validateOpenMiningRoundSummary summaryExamplNoActivity
+  validateOpenMiningRoundSummary summaryExampleNoActivity
+
+  -- 0% Development Fund
+  expectedParameters_LargeSvRewardWeight_10plus ===
+    computeIssuingRoundParameters tickDuration amuletPrice issuanceConfig_10plus summaryExampleLargeSvRewardWeight
+
+  -- 5% Development Fund
+  -- Most parameters decrease by ~5%; larger deviations occur when issuance caps bind or rounding applies.
+  expectedParameters_LargeSvRewardWeight_10plus_DevFund5 ===
+    computeIssuingRoundParameters tickDuration amuletPrice (withDevFund5 issuanceConfig_10plus) summaryExampleLargeSvRewardWeight
+
 
-  let actual = computeIssuingRoundParameters tickDuration amuletPrice issuanceConfig_10plus summaryExampleLargeSvRewardWeight
-  expectedParameters_LargeSvRewardWeight_10plus === actual
+-- Example 5: Development Fund receives the full issuance
+----------------------------------------------------------
+
+expectedParameters_AllIssuanceForFund : IssuingRoundParameters
+expectedParameters_AllIssuanceForFund = IssuingRoundParameters with
+  issuancePerValidatorRewardCoupon = 0.0
+  issuancePerFeaturedAppRewardCoupon = 0.0
+  issuancePerUnfeaturedAppRewardCoupon = 0.0
+  issuancePerValidatorFaucetCoupon = 0.0
+  issuancePerSvRewardCoupon = 0.0
+  unclaimedAppRewards = 0.0
+  unclaimedValidatorRewards = 0.0
+  unclaimedSvRewards = 0.0
+  amuletsToIssueToDevelopmentFund = 761035.0076103501
+
+testAllIssuanceForFund : Script ()
+testAllIssuanceForFund = script do
+  validateOpenMiningRoundSummary summaryExample3
 
+  -- 100% Development Fund
+  -- All issuance goes to the Development Fund; all reward-related fields are zero.
+  let issuanceConfig_0_0p5_fundOne = issuanceConfig_0_0p5 with optDevelopmentFundPercentage = Some 1.0
+  expectedParameters_AllIssuanceForFund === computeIssuingRoundParameters tickDuration amuletPrice issuanceConfig_0_0p5_fundOne summaryExample1
 
 
+-- Utility: apply 5% Development Fund allocation
+withDevFund5 : IssuanceConfig -> IssuanceConfig
+withDevFund5 config = config with optDevelopmentFundPercentage = Some 0.05
diff --git a/daml/splice-amulet-test/daml/Splice/Scripts/Util.daml b/daml/splice-amulet-test/daml/Splice/Scripts/Util.daml
index f7b47d47d6..4bd9daeb71 100644
--- a/daml/splice-amulet-test/daml/Splice/Scripts/Util.daml
+++ b/daml/splice-amulet-test/daml/Splice/Scripts/Util.daml
@@ -39,7 +39,7 @@ import Splice.Testing.Registries.AmuletRegistry.Parameters
 import Splice.Util
 
 -- Bootstrapping Amulet
--------------------
+------------------------
 
 
 -- | A type to hold the off-ledger information required to interact with the Amulet app.
@@ -85,6 +85,19 @@ genericSetupApp dsoPrefix = do
   return app
 
 
+-- Replacing AmuletConfig
+--------------------------
+
+
+replaceDevelopmentFundConfig : AmuletApp -> AmuletConfig Unit.USD -> Optional Party -> Optional Decimal -> Script ()
+replaceDevelopmentFundConfig app baseConfig optDevelopmentFundManager optDevelopmentFundPercentage = do
+  setAmuletConfig app baseConfig baseConfig with
+    optDevelopmentFundManager
+    issuanceCurve = baseConfig.issuanceCurve with
+      initialValue = baseConfig.issuanceCurve.initialValue with
+        optDevelopmentFundPercentage
+
+
 -- AmuletApp users
 --------------
 
@@ -646,6 +659,25 @@ getAmuletConfig app = do
   now <- getTime
   pure $ getValueAsOf now amuletRules.configSchedule
 
+setAmuletConfig : AmuletApp -> AmuletConfig Unit.USD -> AmuletConfig Unit.USD -> Script ()
+setAmuletConfig app baseConfig newConfig = do
+  Some (amuletRulesCid, _) <- queryAmuletRulesByKey app.dso
+  void $ submit app.dso $
+    exerciseCmd amuletRulesCid AmuletRules_SetConfig with
+      newConfig
+      baseConfig
+
+allocateDevelopmentFundCoupon
+  : AmuletApp -> Party -> Party -> Decimal -> Time -> [ContractId UnclaimedDevelopmentFundCoupon]
+  -> Script AmuletRules_AllocateDevelopmentFundCouponResult
+allocateDevelopmentFundCoupon app fundManager beneficiary amount expiresAt unclaimedDevelopmentFundCouponCids = do
+  submitExerciseAmuletRulesByKey app [fundManager] [] AmuletRules_AllocateDevelopmentFundCoupon with
+    unclaimedDevelopmentFundCouponCids
+    beneficiary
+    amount
+    expiresAt
+    fundManager
+
 -- Metadata verification
 ------------------------
 
@@ -693,13 +725,16 @@ genericCheckTxMetadata extractMeta extractSummary app expectedKind sender body =
   mint <- case extractSummary result of
     None -> pure 0.0
     Some summary -> do
-      let inputUnclaimedActivityRecordAmount = fromOptional 0.0 summary.inputUnclaimedActivityRecordAmount
+      let
+        inputUnclaimedActivityRecordAmount = fromOptional 0.0 summary.inputUnclaimedActivityRecordAmount
+        inputDevelopmentFundAmountAmount = fromOptional 0.0 summary.inputDevelopmentFundAmount
       expectUnlessZero svRewardAmountMetaKey summary.inputSvRewardAmount
       expectUnlessZero appRewardAmountMetaKey summary.inputAppRewardAmount
       expectUnlessZero validatorRewardAmountMetaKey summary.inputValidatorRewardAmount
       expectUnlessZero unclaimedActivityRecordAmountMetaKey inputUnclaimedActivityRecordAmount
+      expectUnlessZero developmentFundAmountMetaKey inputDevelopmentFundAmountAmount
       pure $ summary.inputAppRewardAmount + summary.inputValidatorRewardAmount + summary.inputSvRewardAmount +
-        inputUnclaimedActivityRecordAmount
+        inputUnclaimedActivityRecordAmount + inputDevelopmentFundAmountAmount
   let expectedBurn = totalHoldingsBefore + mint - totalHoldingsAfter
   -- mints are inferred, and show here as a negative burn
   if (expectedBurn < 0.0)
diff --git a/daml/splice-amulet/daml/Splice/Amulet.daml b/daml/splice-amulet/daml/Splice/Amulet.daml
index d3366d4190..07f6c0c072 100644
--- a/daml/splice-amulet/daml/Splice/Amulet.daml
+++ b/daml/splice-amulet/daml/Splice/Amulet.daml
@@ -81,9 +81,15 @@ data SvRewardCoupon_ArchiveAsBeneficiaryResult = SvRewardCoupon_ArchiveAsBenefic
 
 data UnclaimedActivityRecord_ArchiveAsBeneficiaryResult = UnclaimedActivityRecord_ArchiveAsBeneficiaryResult
 
-data UnclaimedActivityRecord_DsoExpireResult = UnclaimedActivityRecord_DsoExpireResult with 
+data UnclaimedActivityRecord_DsoExpireResult = UnclaimedActivityRecord_DsoExpireResult with
   unclaimedRewardCid : ContractId UnclaimedReward
 
+data DevelopmentFundCoupon_WithdrawResult = DevelopmentFundCoupon_WithdrawResult with
+  unclaimedDevelopmentFundCouponCid : ContractId UnclaimedDevelopmentFundCoupon
+
+data DevelopmentFundCoupon_DsoExpireResult = DevelopmentFundCoupon_DsoExpireResult with
+  unclaimedDevelopmentFundCouponCid : ContractId UnclaimedDevelopmentFundCoupon
+
 -- | A amulet, which can be locked and whose amount expires over time.
 --
 -- The expiry serves to charge an inactivity fee, and thereby ensures that the
@@ -383,6 +389,55 @@ template SvRewardCoupon with
       do return SvRewardCoupon_ArchiveAsBeneficiaryResult
 
 
+-- | A coupon recording an emission for the Development Fund from CIP-0082 that
+-- was not yet assigned to a specific beneficiary.
+template UnclaimedDevelopmentFundCoupon
+  with
+    dso : Party
+    amount : Decimal -- ^ The total amount of `Amulet` to mint on collection.
+  where
+    signatory dso
+    ensure amount > 0.0
+
+-- | A coupon recording an emission for the Development Fund under CIP-0082,
+-- which can be collected by the designated beneficiary.
+template DevelopmentFundCoupon
+  with
+    dso : Party
+    beneficiary : Party -- ^ The owner of the `Amulet` to be minted.
+    fundManager : Party
+      -- ^ The party that executed the assignment of the coupon to the beneficiary
+      -- so they can mint from the development fund.
+    amount : Decimal -- ^ The total amount of `Amulet` to mint on collection.
+    expiresAt : Time -- ^ Until when the minting can be completed.
+  where
+    ensure amount > 0.0
+
+    signatory dso
+
+    -- The beneficiary is an observer of the coupon, as they need to be able to claim it.
+    observer beneficiary
+
+    -- The fundManager is an observer so they can see both the transaction creating and the one archiving the coupon.
+    observer fundManager
+
+    choice DevelopmentFundCoupon_Withdraw : DevelopmentFundCoupon_WithdrawResult
+      with
+        reason : Text -- ^ Reason for withdrawing the coupon.
+      controller fundManager
+      do
+        assertWithinDeadline "DevelopmentFundCoupon.expiresAt" expiresAt
+        unclaimedDevelopmentFundCouponCid <- create UnclaimedDevelopmentFundCoupon with dso; amount
+        return DevelopmentFundCoupon_WithdrawResult with unclaimedDevelopmentFundCouponCid
+
+    choice DevelopmentFundCoupon_DsoExpire : DevelopmentFundCoupon_DsoExpireResult
+      controller dso
+      do
+        assertDeadlineExceeded "DevelopmentFundCoupon.expiresAt" expiresAt
+        unclaimedDevelopmentFundCouponCid <- create UnclaimedDevelopmentFundCoupon with dso; amount
+        pure DevelopmentFundCoupon_DsoExpireResult with unclaimedDevelopmentFundCouponCid
+
+
 -- | Rewards that have not been claimed and are thus at the disposal of the foundation.
 template UnclaimedReward with
     dso : Party
@@ -392,29 +447,29 @@ template UnclaimedReward with
 
     signatory dso
 
--- | A record of activity that can be minted by the beneficiary. 
--- Note that these do not come out of the per-round issuance but are instead created by burning 
--- UnclaimedRewardCoupon as defined through a vote by the SVs. That's also why expiry is a separate 
+-- | A record of activity that can be minted by the beneficiary.
+-- Note that these do not come out of the per-round issuance but are instead created by burning
+-- UnclaimedRewardCoupon as defined through a vote by the SVs. That's also why expiry is a separate
 -- time-based expiry instead of being tied to a round like the other activity records.
 template UnclaimedActivityRecord
   with
     dso : Party
     beneficiary : Party -- ^ The owner of the `Amulet` to be minted.
     amount : Decimal -- ^ The amount of `Amulet` to be minted.
-    reason : Text -- ^ A reason to mint the `Amulet`. 
-    expiresAt : Time -- ^ Selected timestamp defining the lifetime of the contract. 
-  where 
+    reason : Text -- ^ A reason to mint the `Amulet`.
+    expiresAt : Time -- ^ Selected timestamp defining the lifetime of the contract.
+  where
     signatory dso
     observer beneficiary
     ensure amount > 0.0
 
     choice UnclaimedActivityRecord_DsoExpire : UnclaimedActivityRecord_DsoExpireResult
       controller dso
-      do 
+      do
         assertDeadlineExceeded "UnclaimedActivityRecord.expiresAt" expiresAt
         unclaimedRewardCid <- create UnclaimedReward with dso; amount
         pure UnclaimedActivityRecord_DsoExpireResult with unclaimedRewardCid
-  
+
 
 requireAmuletExpiredForAllOpenRounds : ContractId OpenMiningRound -> Amulet -> Update ()
 requireAmuletExpiredForAllOpenRounds roundCid amulet = do
@@ -456,4 +511,13 @@ instance HasCheckedFetch FeaturedAppActivityMarker ForDso where
   contractGroupId FeaturedAppActivityMarker {..} = ForDso with dso
 
 instance HasCheckedFetch UnclaimedActivityRecord ForOwner where
-  contractGroupId UnclaimedActivityRecord{..} = ForOwner with dso; owner = beneficiary
\ No newline at end of file
+  contractGroupId UnclaimedActivityRecord{..} = ForOwner with dso; owner = beneficiary
+
+instance HasCheckedFetch UnclaimedDevelopmentFundCoupon ForDso where
+  contractGroupId UnclaimedDevelopmentFundCoupon{..} = ForDso with dso
+
+instance HasCheckedFetch DevelopmentFundCoupon ForOwner where
+  contractGroupId DevelopmentFundCoupon{..} = ForOwner with dso; owner = beneficiary
+
+instance HasCheckedFetch DevelopmentFundCoupon ForDso where
+  contractGroupId DevelopmentFundCoupon{..} = ForDso with dso
diff --git a/daml/splice-amulet/daml/Splice/Amulet/TokenApiUtils.daml b/daml/splice-amulet/daml/Splice/Amulet/TokenApiUtils.daml
index 1b8f738c20..bd339412e3 100644
--- a/daml/splice-amulet/daml/Splice/Amulet/TokenApiUtils.daml
+++ b/daml/splice-amulet/daml/Splice/Amulet/TokenApiUtils.daml
@@ -43,7 +43,7 @@ nonZeroMetadata k n m
 
 -- | Add an metadata entry for an optional value if it is non-zero number.
 optionalNonZeroMetadata : (Eq a, Additive a, Show a) => Text -> Optional a -> TextMap Text -> TextMap Text
-optionalNonZeroMetadata k optN m = 
+optionalNonZeroMetadata k optN m =
   case optN of
     None -> m
     Some n -> nonZeroMetadata k n m
@@ -75,6 +75,9 @@ appRewardBeneficiariesMetaKey = amuletPrefix <> "app-reward-beneficiaries"
 appRewardBeneficiaryWeightsMetaKey : Text
 appRewardBeneficiaryWeightsMetaKey = amuletPrefix <> "app-reward-beneficiary-weights"
 
+developmentFundAmountMetaKey : Text
+developmentFundAmountMetaKey = amuletPrefix <> "development-fund"
+
 
 -- Splice API Metadata keys
 ---------------------------
diff --git a/daml/splice-amulet/daml/Splice/AmuletConfig.daml b/daml/splice-amulet/daml/Splice/AmuletConfig.daml
index abb4dc9af0..c5c9f1bf4d 100644
--- a/daml/splice-amulet/daml/Splice/AmuletConfig.daml
+++ b/daml/splice-amulet/daml/Splice/AmuletConfig.daml
@@ -45,6 +45,8 @@ data AmuletConfig unit = AmuletConfig with
       -- that should be used for command submissions.
     transferPreapprovalFee : Optional Decimal -- ^ Fee for keeping a transfer pre-approval around.
     featuredAppActivityMarkerAmount : Optional Decimal -- ^ $-amount used for the conversion from FeaturedAppActivityMarker -> AppRewardCoupon
+    optDevelopmentFundManager : Optional Party
+      -- ^ Party authorized to manage and allocate minting rights from the Development Fund.
   deriving (Eq, Show)
 
 -- $1/year specified as a daily rate
@@ -120,6 +122,7 @@ instance Patchable (AmuletConfig USD) where
     packageConfig = patch new.packageConfig base.packageConfig current.packageConfig
     transferPreapprovalFee = patch new.transferPreapprovalFee base.transferPreapprovalFee current.transferPreapprovalFee
     featuredAppActivityMarkerAmount = patch new.featuredAppActivityMarkerAmount base.featuredAppActivityMarkerAmount current.featuredAppActivityMarkerAmount
+    optDevelopmentFundManager = patch new.optDevelopmentFundManager base.optDevelopmentFundManager current.optDevelopmentFundManager
 
 instance Patchable (TransferConfig USD) where
   patch new base current = TransferConfig with
diff --git a/daml/splice-amulet/daml/Splice/AmuletRules.daml b/daml/splice-amulet/daml/Splice/AmuletRules.daml
index 392e25fa9f..edaef635c1 100644
--- a/daml/splice-amulet/daml/Splice/AmuletRules.daml
+++ b/daml/splice-amulet/daml/Splice/AmuletRules.daml
@@ -1,6 +1,7 @@
 -- Copyright (c) 2024 Digital Asset (Switzerland) GmbH and/or its affiliates. All rights reserved.
 -- SPDX-License-Identifier: Apache-2.0
 
+{-# LANGUAGE MultiWayIf #-}
 module Splice.AmuletRules where
 
 import Prelude hiding (forA)
@@ -64,6 +65,7 @@ data AmuletRules_AdvanceOpenMiningRoundsResult = AmuletRules_AdvanceOpenMiningRo
 
 data AmuletRules_MiningRound_StartIssuingResult = AmuletRules_MiningRound_StartIssuingResult with
     issuingRoundCid : ContractId IssuingMiningRound
+    unclaimedDevelopmentFundCouponCid : Optional (ContractId UnclaimedDevelopmentFundCoupon)
 
 data AmuletRules_MiningRound_CloseResult = AmuletRules_MiningRound_CloseResult with
     closedRoundCid : ContractId ClosedMiningRound
@@ -76,6 +78,13 @@ data AmuletRules_ClaimExpiredRewardsResult = AmuletRules_ClaimExpiredRewardsResu
 data AmuletRules_MergeUnclaimedRewardsResult = AmuletRules_MergeUnclaimedRewardsResult with
     unclaimedRewardCid : ContractId UnclaimedReward
 
+data AmuletRules_MergeUnclaimedDevelopmentFundCouponsResult = AmuletRules_MergeUnclaimedDevelopmentFundCouponsResult with
+    unclaimedDevelopmentFundCouponCid : ContractId UnclaimedDevelopmentFundCoupon
+
+data AmuletRules_AllocateDevelopmentFundCouponResult = AmuletRules_AllocateDevelopmentFundCouponResult with
+    developmentFundCouponCid : ContractId DevelopmentFundCoupon
+    optUnclaimedDevelopmentFundCouponCid : Optional (ContractId UnclaimedDevelopmentFundCoupon)
+
 data AmuletRules_SetConfigResult = AmuletRules_SetConfigResult with
     newAmuletRules : ContractId AmuletRules
 
@@ -450,6 +459,15 @@ template AmuletRules
             dso
             amount = totalUnclaimedRewards
 
+        -- record unclaimed development fund coupon contract
+        unclaimedDevelopmentFundCouponCid <-
+          if params.amuletsToIssueToDevelopmentFund > 0.0
+            then
+              Some <$> create UnclaimedDevelopmentFundCoupon with
+                dso
+                amount = params.amuletsToIssueToDevelopmentFund
+            else pure None
+
         -- create issuing round
         now <- getTime
         let tickDuration = miningRound.tickDuration
@@ -579,6 +597,66 @@ template AmuletRules
 
         return AmuletRules_MergeUnclaimedRewardsResult with ..
 
+    -- Batch merge of unclaimed development fund coupons
+    nonconsuming choice AmuletRules_MergeUnclaimedDevelopmentFundCoupons : AmuletRules_MergeUnclaimedDevelopmentFundCouponsResult
+      with
+        unclaimedDevelopmentFundCouponCids : [ContractId UnclaimedDevelopmentFundCoupon]
+      controller dso
+      do
+        require "More than one unclaimed development fund coupon contract" (length unclaimedDevelopmentFundCouponCids > 1)
+
+        -- archive all given coupons
+        archivedAmounts <- forA unclaimedDevelopmentFundCouponCids $ \unclaimedDevelopmentFundCouponCid -> do
+          unclaimedDevelopmentFundCoupon <- fetchAndArchive (ForDso with dso) unclaimedDevelopmentFundCouponCid
+          pure unclaimedDevelopmentFundCoupon.amount
+
+        -- create a new unclaimed development fund coupon over the total
+        unclaimedDevelopmentFundCouponCid <- create UnclaimedDevelopmentFundCoupon with
+          dso
+          amount = sum archivedAmounts
+
+        return AmuletRules_MergeUnclaimedDevelopmentFundCouponsResult with ..
+
+    -- Allows the Development Fund manager to allocate a specified amount from a
+    -- collection of UnclaimedDevelopmentFundCoupons to a beneficiary, generating a
+    -- DevelopmentFundCoupon and producing a leftover unclaimed coupon if applicable.
+    nonconsuming choice AmuletRules_AllocateDevelopmentFundCoupon : AmuletRules_AllocateDevelopmentFundCouponResult
+      with
+        unclaimedDevelopmentFundCouponCids : [ContractId UnclaimedDevelopmentFundCoupon]
+        beneficiary : Party
+        amount : Decimal
+        expiresAt : Time
+        fundManager : Party
+      controller fundManager
+      do
+        -- Verify expiry
+        assertWithinDeadline "DevelopmentFundCoupon.expiresAt" expiresAt
+
+        -- Verify fundManager
+        configUsd <- getValueAsOfLedgerTime configSchedule
+        case configUsd.optDevelopmentFundManager of
+          None -> abort "DevelopmentFundCoupon cannot be allocated without a Development Fund manager configured"
+          Some developmentFundManager ->
+            require ("controller is the configured Development Fund manager: " <> show developmentFundManager) $
+              developmentFundManager == fundManager
+
+        -- Verify the amount and create a leftover UnclaimedDevelopmentFundCoupon if needed
+        totalUnclaimedDevelopmentFundCoupons <- sum <$> forA unclaimedDevelopmentFundCouponCids \cid -> do
+          coupon <- fetchAndArchive (ForDso with dso) cid
+          pure coupon.amount
+        let leftover = totalUnclaimedDevelopmentFundCoupons - amount
+        optUnclaimedDevelopmentFundCouponCid <-
+          if | leftover < 0.0 -> abort $ "insufficient amount to cover the requested allocation: " <> show (negate leftover)
+             | leftover == 0.0 -> pure None
+             | otherwise -> Some <$> create UnclaimedDevelopmentFundCoupon with dso; amount = leftover
+
+        -- record development fund coupon contract
+        developmentFundCouponCid <- create DevelopmentFundCoupon with dso; beneficiary; fundManager; amount; expiresAt
+
+        return AmuletRules_AllocateDevelopmentFundCouponResult with
+          developmentFundCouponCid
+          optUnclaimedDevelopmentFundCouponCid
+
     -- This allows fetchByKey-style fetches if you have readAs
     -- but not actAs claims.
     nonconsuming choice AmuletRules_Fetch: AmuletRules
@@ -717,7 +795,7 @@ data RewardsIssuanceConfig = RewardsIssuanceConfig with
 
 -- | Execute a transfer.
 executeTransfer : RewardsIssuanceConfig -> TransferContext -> Party -> Transfer -> Update TransferResult
-executeTransfer config context dso t = do
+executeTransfer config context dso t  = do
   -- compute summaries
   csum <- summarizeAndValidateContext context dso t
   isum <- summarizeAndConsumeInputs csum dso t.sender t.inputs
@@ -749,6 +827,7 @@ executeTransfer config context dso t = do
           nonZeroMetadata appRewardAmountMetaKey summary.inputAppRewardAmount $
           nonZeroMetadata validatorRewardAmountMetaKey summary.inputValidatorRewardAmount $
           optionalNonZeroMetadata unclaimedActivityRecordAmountMetaKey summary.inputUnclaimedActivityRecordAmount $
+          optionalNonZeroMetadata developmentFundAmountMetaKey summary.inputDevelopmentFundAmount $
           TextMap.empty
 
   return TransferResult with
@@ -778,6 +857,9 @@ data TransferInputsSummary = TransferInputsSummary with
     totalUnclaimedActivityRecordAmount : Optional Decimal
       -- ^ Note: Made optional as the addition of this field is checked by the upgrade checker
       -- on package upload because `TransferInputsSummary` is serializable.
+    totalDevelopmentFundAmount : Optional Decimal
+      -- ^ Note: Same rationale as above — made optional to ensure compatibility with
+      -- the upgrade checker on package upload because `TransferInputsSummary` is serializable.
   deriving (Eq, Show)
 
 type TransferOutputsSummary = [PreprocessedTransferOutput]
@@ -836,6 +918,7 @@ summarizeAndConsumeInputs csum dso sender inps = do
     foldlA (summarizeAndConsumeInput csum.openRound.round) initialSummary inps
   where
     forOwner = ForOwner with dso; owner = sender
+    forDso = ForDso with dso
 
     initialSummary = TransferInputsSummary with
       totalAmuletAmount = 0.0
@@ -847,6 +930,7 @@ summarizeAndConsumeInputs csum dso sender inps = do
       amountArchivedAsOfRoundZero = 0.0
       changeToHoldingFeesRate = 0.0
       totalUnclaimedActivityRecordAmount = Some 0.0
+      totalDevelopmentFundAmount = Some 0.0
 
     summarizeAndConsumeInput _round s (InputAmulet amuletCid) = do
       amulet <- fetchAndArchive forOwner amuletCid
@@ -863,6 +947,7 @@ summarizeAndConsumeInputs csum dso sender inps = do
         totalHoldingFees = s.totalHoldingFees
         amountArchivedAsOfRoundZero = s.amountArchivedAsOfRoundZero + getValueAsOfRound0 amulet.amount
         changeToHoldingFeesRate = s.changeToHoldingFeesRate - amulet.amount.ratePerRound.rate
+        totalDevelopmentFundAmount = s.totalDevelopmentFundAmount
 
     summarizeAndConsumeInput _round s (InputAppRewardCoupon couponCid) = do
       coupon <- fetchAndArchive forOwner couponCid
@@ -881,10 +966,11 @@ summarizeAndConsumeInputs csum dso sender inps = do
         totalHoldingFees = s.totalHoldingFees
         amountArchivedAsOfRoundZero = s.amountArchivedAsOfRoundZero
         changeToHoldingFeesRate = s.changeToHoldingFeesRate
+        totalDevelopmentFundAmount = s.totalDevelopmentFundAmount
 
     summarizeAndConsumeInput _round s (InputValidatorRewardCoupon couponCid) = do
       -- we must and do use the validator right to archive the coupon of the user
-      coupon <- fetchButArchiveLater (ForDso with dso) couponCid
+      coupon <- fetchButArchiveLater forDso couponCid
       do
         rightCid <- getValidatorRight csum coupon.user
         exercise couponCid ValidatorRewardCoupon_ArchiveAsValidator with
@@ -902,6 +988,7 @@ summarizeAndConsumeInputs csum dso sender inps = do
         totalHoldingFees = s.totalHoldingFees
         amountArchivedAsOfRoundZero = s.amountArchivedAsOfRoundZero
         changeToHoldingFeesRate = s.changeToHoldingFeesRate
+        totalDevelopmentFundAmount = s.totalDevelopmentFundAmount
 
     summarizeAndConsumeInput _round s (InputSvRewardCoupon couponCid) = do
       -- we use the SvRewardCoupon_ArchiveAsBeneficiary choice to signal the archival of the coupon
@@ -920,6 +1007,7 @@ summarizeAndConsumeInputs csum dso sender inps = do
         totalHoldingFees = s.totalHoldingFees
         amountArchivedAsOfRoundZero = s.amountArchivedAsOfRoundZero
         changeToHoldingFeesRate = s.changeToHoldingFeesRate
+        totalDevelopmentFundAmount = s.totalDevelopmentFundAmount
 
     summarizeAndConsumeInput _round s (InputValidatorLivenessActivityRecord recordCid) = do
       record <- fetchAndArchive forOwner recordCid
@@ -936,6 +1024,7 @@ summarizeAndConsumeInputs csum dso sender inps = do
         totalHoldingFees = s.totalHoldingFees
         amountArchivedAsOfRoundZero = s.amountArchivedAsOfRoundZero
         changeToHoldingFeesRate = s.changeToHoldingFeesRate
+        totalDevelopmentFundAmount = s.totalDevelopmentFundAmount
 
     summarizeAndConsumeInput _round s (ExtTransferInput _dummyUnitField optInputValidatorFaucetCoupon) = do
       optional (pure s) (summarizeAndConsumeValidatorFaucetInput s) optInputValidatorFaucetCoupon
@@ -954,6 +1043,22 @@ summarizeAndConsumeInputs csum dso sender inps = do
         totalHoldingFees = s.totalHoldingFees
         amountArchivedAsOfRoundZero = s.amountArchivedAsOfRoundZero
         changeToHoldingFeesRate = s.changeToHoldingFeesRate
+        totalDevelopmentFundAmount = s.totalDevelopmentFundAmount
+
+    summarizeAndConsumeInput _round s (InputDevelopmentFundCoupon couponCid) = do
+      coupon <- fetchAndArchive forOwner couponCid
+      assertWithinDeadline "DevelopmentFundCoupon.expiresAt" coupon.expiresAt
+      return TransferInputsSummary with
+        totalAmuletAmount = s.totalAmuletAmount
+        totalAppRewardAmount = s.totalAppRewardAmount
+        totalValidatorRewardAmount = s.totalValidatorRewardAmount
+        totalUnclaimedActivityRecordAmount = s.totalUnclaimedActivityRecordAmount
+        totalValidatorFaucetAmount = s.totalValidatorFaucetAmount
+        totalSvRewardAmount = s.totalSvRewardAmount
+        totalHoldingFees = s.totalHoldingFees
+        amountArchivedAsOfRoundZero = s.amountArchivedAsOfRoundZero
+        changeToHoldingFeesRate = s.changeToHoldingFeesRate
+        totalDevelopmentFundAmount = (+ coupon.amount) <$> s.totalDevelopmentFundAmount
 
     summarizeAndConsumeValidatorFaucetInput s couponCid = do
       coupon <- fetchAndArchive forOwner couponCid
@@ -970,6 +1075,7 @@ summarizeAndConsumeInputs csum dso sender inps = do
         totalHoldingFees = s.totalHoldingFees
         amountArchivedAsOfRoundZero = s.amountArchivedAsOfRoundZero
         changeToHoldingFeesRate = s.changeToHoldingFeesRate
+        totalDevelopmentFundAmount = s.totalDevelopmentFundAmount
 
 -- | Deduplicate lock-holders to store them and charge for them at most once
 dedupOutputLockHolders : TransferOutput -> TransferOutput
@@ -1029,6 +1135,7 @@ summarizeTransfer sender openRound transferConfigAmulet inp preprocessedOutputs
       + fromOptional 0.0 inp.totalUnclaimedActivityRecordAmount
       + inp.totalValidatorFaucetAmount
       + inp.totalSvRewardAmount
+      + fromOptional 0.0 inp.totalDevelopmentFundAmount
       - totalOutputAmount - sum outputFees
     senderChangeFee = min transferConfigAmulet.createFee.fee leftOverAmount
     senderChangeAmount = leftOverAmount - senderChangeFee
@@ -1054,6 +1161,7 @@ summarizeTransfer sender openRound transferConfigAmulet inp preprocessedOutputs
       inputUnclaimedActivityRecordAmount = inp.totalUnclaimedActivityRecordAmount
       inputValidatorFaucetAmount = Some inp.totalValidatorFaucetAmount
       inputSvRewardAmount = inp.totalSvRewardAmount
+      inputDevelopmentFundAmount = inp.totalDevelopmentFundAmount
       holdingFees = inp.totalHoldingFees
       outputFees
       senderChangeFee
@@ -1245,6 +1353,7 @@ data TransferInput
         -- ^ Added in CIP-3. Optional validator faucet coupon input into this transfer.
   | InputValidatorLivenessActivityRecord (ContractId ValidatorLivenessActivityRecord)
   | InputUnclaimedActivityRecord (ContractId UnclaimedActivityRecord)
+  | InputDevelopmentFundCoupon (ContractId DevelopmentFundCoupon)
   deriving (Eq, Ord, Show)
 
 -- | Smart constructor for inputing validator faucet coupons into a transfer.
@@ -1348,6 +1457,9 @@ data TransferSummary = TransferSummary with
     inputUnclaimedActivityRecordAmount : Optional Decimal
       -- ^ Total amount of unclaimed activity record issuance input into this transfer.
       -- Note: Made optional as the addition of this field is checked by the upgrade checker.
+    inputDevelopmentFundAmount : Optional Decimal
+      -- ^ Total amount of development fund coupon issuance input into this transfer.
+      -- Note: Made optional as the addition of this field is checked by the upgrade checker.
   deriving (Show, Eq)
 
 data BalanceChange = BalanceChange with
diff --git a/daml/splice-amulet/daml/Splice/Issuance.daml b/daml/splice-amulet/daml/Splice/Issuance.daml
index 91da289785..62fba77c48 100644
--- a/daml/splice-amulet/daml/Splice/Issuance.daml
+++ b/daml/splice-amulet/daml/Splice/Issuance.daml
@@ -25,6 +25,8 @@ data IssuanceConfig = IssuanceConfig with
     optValidatorFaucetCap : Optional Decimal
       -- ^ Maximal amount in $ for the per-validator issuance of validator faucet coupons;
       -- Introduced as part of CIP-3. Defaults to 2.85 USD.
+    optDevelopmentFundPercentage : Optional Decimal
+      -- ^ Percentage of each mint emission allocated to the Development Fund under CIP-0082.
   deriving (Eq, Show)
 
 -- | Getter with the right default value for the validator faucet cap.
@@ -45,6 +47,7 @@ validIssuanceConfig this@IssuanceConfig{..} =
     && featuredAppRewardCap >= 0.0
     && unfeaturedAppRewardCap >= 0.0
     && getValidatorFaucetCap this >= 0.0
+    && optional True (\pct -> pct >= 0.0 && pct <= 1.0) optDevelopmentFundPercentage
 
 
 -- computation of issuance per round
@@ -73,6 +76,7 @@ data IssuingRoundParameters = IssuingRoundParameters with
     unclaimedValidatorRewards : Decimal
     unclaimedSvRewards : Decimal -- ^ Can be non-zero due to rounding, or no SV having had the chance to claim their coupons.
     issuancePerValidatorFaucetCoupon : Decimal
+    amuletsToIssueToDevelopmentFund : Decimal
   deriving (Eq, Show)
 
 validateOpenMiningRoundSummary : CanAssert m => OpenMiningRoundSummary -> m ()
@@ -94,9 +98,14 @@ computeIssuingRoundParameters tickDuration amuletPrice config summary =
       unclaimedAppRewards = featuredAppIssuance.unclaimedRewards
       unclaimedSvRewards
       issuancePerValidatorFaucetCoupon = validatorFaucetIssuance.issuancePerCoupon
+      amuletsToIssueToDevelopmentFund
   where
+    developmentFundPercentage = fromOptional 0.0 config.optDevelopmentFundPercentage
+
     amuletsToIssueToSvs =
-      amuletsToIssueInRound - validatorRewardIssuance.rewardsToIssue - unfeaturedAppIssuance.rewardsToIssue
+      adjustedAmuletsToIssueInRound
+        - validatorRewardIssuance.rewardsToIssue
+        - unfeaturedAppIssuance.rewardsToIssue
 
     issuancePerSvRewardCoupon =
       if summary.totalSvRewardWeight == 0
@@ -114,8 +123,11 @@ computeIssuingRoundParameters tickDuration amuletPrice config summary =
       intToDecimal (convertRelTimeToMicroseconds tickDuration)
     amuletsToIssueInRound = config.amuletToIssuePerYear / roundsPerYear
 
+    amuletsToIssueToDevelopmentFund = amuletsToIssueInRound * developmentFundPercentage
+    adjustedAmuletsToIssueInRound = amuletsToIssueInRound - amuletsToIssueToDevelopmentFund
+
     validatorRewardIssuance = computeIssuanceTranche
-      (amuletsToIssueInRound * config.validatorRewardPercentage)
+      (adjustedAmuletsToIssueInRound * config.validatorRewardPercentage)
       config.validatorRewardCap
       summary.totalValidatorRewardCoupons
 
@@ -126,7 +138,7 @@ computeIssuingRoundParameters tickDuration amuletPrice config summary =
       (intToDecimal $ getTotalValidatorFaucetCoupons summary)
 
     unfeaturedAppIssuance = computeIssuanceTranche
-      (amuletsToIssueInRound * config.appRewardPercentage)
+      (adjustedAmuletsToIssueInRound * config.appRewardPercentage)
       config.unfeaturedAppRewardCap
       (summary.totalFeaturedAppRewardCoupons + summary.totalUnfeaturedAppRewardCoupons)
 
@@ -179,3 +191,4 @@ instance Patchable IssuanceConfig where
     featuredAppRewardCap = patch new.featuredAppRewardCap base.featuredAppRewardCap current.featuredAppRewardCap
     unfeaturedAppRewardCap = patch new.unfeaturedAppRewardCap base.unfeaturedAppRewardCap current.unfeaturedAppRewardCap
     optValidatorFaucetCap = patch new.optValidatorFaucetCap base.optValidatorFaucetCap current.optValidatorFaucetCap
+    optDevelopmentFundPercentage = patch new.optDevelopmentFundPercentage base.optDevelopmentFundPercentage current.optDevelopmentFundPercentage
diff --git a/daml/splice-dso-governance-test/daml/Splice/Scripts/DsoTestUtils.daml b/daml/splice-dso-governance-test/daml/Splice/Scripts/DsoTestUtils.daml
index 17abe747c3..8187ce50ad 100644
--- a/daml/splice-dso-governance-test/daml/Splice/Scripts/DsoTestUtils.daml
+++ b/daml/splice-dso-governance-test/daml/Splice/Scripts/DsoTestUtils.daml
@@ -9,12 +9,14 @@ import DA.Assert
 import DA.Foldable (forA_)
 import DA.List
 import qualified DA.Map as Map
+import DA.Optional (fromOptional)
 import qualified DA.Set as Set
 import qualified DA.Text as T
 import Daml.Script
 import DA.Time
 
 import Splice.Amulet
+import Splice.AmuletConfig (AmuletConfig(..), USD)
 import Splice.AmuletRules
 import Splice.Issuance
 import Splice.Round
@@ -38,24 +40,26 @@ bpsMultiplier : Int
 bpsMultiplier = 10000
 
 initMainNet : Script (AmuletApp, Party, (Party, Party, Party, Party))
-initMainNet = initDecentralizedSynchronizer False
+initMainNet = initDecentralizedSynchronizer False None
 
 
 initMainNetWithAmuletPrice : Decimal -> Script (AmuletApp, Party, (Party, Party, Party, Party))
-initMainNetWithAmuletPrice = initDecentralizedSynchronizerWithAmuletPrice False 0
+initMainNetWithAmuletPrice amuletPrice = initDecentralizedSynchronizerWithAmuletPrice False 0 amuletPrice None
 
 initDevNet : Script (AmuletApp, Party, (Party, Party, Party, Party))
-initDevNet = initDecentralizedSynchronizer True
+initDevNet = initDecentralizedSynchronizer True None
 
+initDevNetWithAmuletConfig : AmuletConfig USD -> Script (AmuletApp, Party, (Party, Party, Party, Party))
+initDevNetWithAmuletConfig amuletConfig = initDecentralizedSynchronizer True (Some amuletConfig)
 
-initDecentralizedSynchronizer : Bool -> Script (AmuletApp, Party, (Party, Party, Party, Party))
-initDecentralizedSynchronizer isDevNet = initDecentralizedSynchronizerWithAmuletPrice isDevNet 0 1.0
+initDecentralizedSynchronizer : Bool -> Optional (AmuletConfig USD) -> Script (AmuletApp, Party, (Party, Party, Party, Party))
+initDecentralizedSynchronizer isDevNet optAmuletConfig = initDecentralizedSynchronizerWithAmuletPrice isDevNet 0 1.0 optAmuletConfig
 
 initDecentralizedSynchronizerWithNonZeroRound : Bool -> Int -> Script (AmuletApp, Party, (Party, Party, Party, Party))
-initDecentralizedSynchronizerWithNonZeroRound isDevNet initialRound = initDecentralizedSynchronizerWithAmuletPrice isDevNet initialRound 1.0
+initDecentralizedSynchronizerWithNonZeroRound isDevNet initialRound = initDecentralizedSynchronizerWithAmuletPrice isDevNet initialRound 1.0 None
 
-initDecentralizedSynchronizerWithAmuletPrice : Bool -> Int -> Decimal -> Script (AmuletApp, Party, (Party, Party, Party, Party))
-initDecentralizedSynchronizerWithAmuletPrice isDevNet initialRound amuletPrice = do
+initDecentralizedSynchronizerWithAmuletPrice : Bool -> Int -> Decimal -> Optional (AmuletConfig USD) -> Script (AmuletApp, Party, (Party, Party, Party, Party))
+initDecentralizedSynchronizerWithAmuletPrice isDevNet initialRound amuletPrice optAmuletConfig = do
   [sv1, sv2, sv3, sv4] <- forA ["sv1", "sv2", "sv3", "sv4"] allocateParty
 
   dso <- allocateParty "dso-party"
@@ -82,7 +86,7 @@ initDecentralizedSynchronizerWithAmuletPrice isDevNet initialRound amuletPrice =
         decentralizedSynchronizer = initialDsoDecentralizedSynchronizerConfig
         nextScheduledSynchronizerUpgrade = None
         voteCooldownTime = None -- use default value of 1 minute
-  let amuletConfig = defaultAmuletConfig
+  let amuletConfig = fromOptional defaultAmuletConfig optAmuletConfig
   let ansRulesConfig = defaultAnsRulesConfig
 
   now <- getTime
diff --git a/daml/splice-dso-governance-test/daml/Splice/Scripts/TestDecentralizedAutomation.daml b/daml/splice-dso-governance-test/daml/Splice/Scripts/TestDecentralizedAutomation.daml
index 5d08b8d107..19d7f69613 100644
--- a/daml/splice-dso-governance-test/daml/Splice/Scripts/TestDecentralizedAutomation.daml
+++ b/daml/splice-dso-governance-test/daml/Splice/Scripts/TestDecentralizedAutomation.daml
@@ -3,6 +3,7 @@
 
 module Splice.Scripts.TestDecentralizedAutomation where
 
+import DA.Action (replicateA_)
 import DA.Assert
 import DA.Foldable (forA_)
 import DA.List()
@@ -26,6 +27,7 @@ import Splice.Scripts.DsoTestUtils
 import Splice.Ans
 import Splice.Scripts.AnsRulesParameters
 import Splice.Scripts.TestTransferPreapproval
+import Splice.Testing.Registries.AmuletRegistry.Parameters
 import Splice.Wallet.Subscriptions
 
 
@@ -53,6 +55,95 @@ testUnclaimedRewardsMerging = do
   pure ()
 
 
+-- Development Fund
+--------------------
+
+testUnclaimedDevelopmentFundCouponsMerging : Script ()
+testUnclaimedDevelopmentFundCouponsMerging = do
+  let
+    -- 5% Development Fund
+    amuletConfig =
+      defaultAmuletConfig with
+        issuanceCurve = defaultAmuletConfig.issuanceCurve with
+          initialValue = defaultAmuletConfig.issuanceCurve.initialValue with
+            optDevelopmentFundPercentage = Some 0.05
+  (app, _, (sv1, _, _, _)) <- initDevNetWithAmuletConfig amuletConfig
+
+  -- Mint 5 unclaimed development fund coupons
+  replicateA_ 5 $ runNextIssuanceD app 1.0
+
+  [(amuletRulesCid, _)] <- query @AmuletRules app.dso
+  unclaimedDevelopmentFundCouponCids@(cid1 :: _) <- fmap fst <$> query @UnclaimedDevelopmentFundCoupon app.dso
+  length unclaimedDevelopmentFundCouponCids === 5
+
+  -- Unhappy path - requires more than one development fund coupon contract.
+  dsoDelegateSubmitsMustFail app $ \cid -> exerciseCmd cid $
+    DsoRules_MergeUnclaimedDevelopmentFundCoupons with
+      amuletRulesCid
+      choiceArg = AmuletRules_MergeUnclaimedDevelopmentFundCoupons with
+        unclaimedDevelopmentFundCouponCids = [cid1]
+      sv = sv1
+
+  -- Happy path
+  dsoDelegateSubmits app $ \cid -> exerciseCmd cid $
+    DsoRules_MergeUnclaimedDevelopmentFundCoupons with
+      amuletRulesCid
+      choiceArg = AmuletRules_MergeUnclaimedDevelopmentFundCoupons with
+        unclaimedDevelopmentFundCouponCids
+      sv = sv1
+
+  unclaimedDevelopmentFundCoupons <- query @UnclaimedDevelopmentFundCoupon app.dso
+  length unclaimedDevelopmentFundCoupons === 1
+
+  pure ()
+
+testDevelopmentFundCouponExpiry : Script ()
+testDevelopmentFundCouponExpiry = do
+  fundManager <- allocateParty "FundManager"
+  let
+    -- 5% Development Fund
+    amuletConfig =
+      defaultAmuletConfig with
+        optDevelopmentFundManager = Some fundManager
+        issuanceCurve = defaultAmuletConfig.issuanceCurve with
+          initialValue = defaultAmuletConfig.issuanceCurve.initialValue with
+            optDevelopmentFundPercentage = Some 0.05
+  (app, _, (sv1, _, _, _)) <- initDevNetWithAmuletConfig amuletConfig
+  [(dsoRulesCid, _)] <- query @DsoRules app.dso
+
+  -- Mint 1 unclaimed development fund coupon
+  runNextIssuanceD app 1.0
+  [(unclaimedDevelopmentFundCouponCid, unclaimedDevelopmentFundCoupon)] <- query @UnclaimedDevelopmentFundCoupon app.dso
+
+  -- Allocate a development fund coupon
+  now <- getTime
+  let
+    expiresAt = addRelTime now (hours 1)
+    amount = unclaimedDevelopmentFundCoupon.amount
+  alice <- setupUser app "alice" app.dso
+  developmentFundCouponCid <- (.developmentFundCouponCid) <$>
+    allocateDevelopmentFundCoupon app fundManager alice.primaryParty amount expiresAt [unclaimedDevelopmentFundCouponCid]
+
+  -- Unhappy - expiresAt has not been reached
+  submitMultiMustFail [sv1] [app.dso] do
+    exerciseCmd dsoRulesCid DsoRules_ExpireDevelopmentFundCoupon with
+      developmentFundCouponCid
+      sv = sv1
+
+  -- Happy
+  setTime $ addRelTime expiresAt (minutes 1)
+  unclaimedDevelopmentFundCouponCid <- (.unclaimedDevelopmentFundCouponCid) <$>
+    submitMulti [sv1] [app.dso] do
+      exerciseCmd dsoRulesCid DsoRules_ExpireDevelopmentFundCoupon with
+        developmentFundCouponCid
+        sv = sv1
+  Some unclaimedDevelopmentFundCoupon <- queryContractId app.dso unclaimedDevelopmentFundCouponCid
+  unclaimedDevelopmentFundCoupon === UnclaimedDevelopmentFundCoupon with
+    dso = app.dso
+    amount
+
+  pure ()
+
 
 -- Testing confirmations
 ------------------------
diff --git a/daml/splice-dso-governance-test/daml/Splice/Scripts/TestGovernance.daml b/daml/splice-dso-governance-test/daml/Splice/Scripts/TestGovernance.daml
index c71be96ff0..da4495b672 100644
--- a/daml/splice-dso-governance-test/daml/Splice/Scripts/TestGovernance.daml
+++ b/daml/splice-dso-governance-test/daml/Splice/Scripts/TestGovernance.daml
@@ -730,6 +730,7 @@ testAmuletRulesTickDurationChange = do
 testAmuletRulesConfigChange : Script ()
 testAmuletRulesConfigChange = do
   (app, dso, (sv1, sv2, sv3, _)) <- initMainNet
+  let Some fundManager = partyFromText "FundManager"
 
   [(dsoRulesCid, _)] <- query @DsoRules dso
 
@@ -766,6 +767,7 @@ testAmuletRulesConfigChange = do
         amuletToIssuePerYear = 40e9
         validatorRewardPercentage = 0.05
         appRewardPercentage = 0.15
+        optDevelopmentFundPercentage = Some 0.05
 
   let defaultIssuanceCurve2 = Schedule with
         initialValue = issuanceConfig_0p5_1p5_2
@@ -778,6 +780,7 @@ testAmuletRulesConfigChange = do
         transferConfig = defaultTransferConfig2
         issuanceCurve = defaultIssuanceCurve2
         tickDuration = seconds 200
+        optDevelopmentFundManager = Some fundManager
 
   -- second config that changes the other half of the parameters
   let newConfig2 = amuletRules.configSchedule.initialValue with
diff --git a/daml/splice-dso-governance/daml/Splice/DsoRules.daml b/daml/splice-dso-governance/daml/Splice/DsoRules.daml
index 71990a32ea..fefb3336f1 100644
--- a/daml/splice-dso-governance/daml/Splice/DsoRules.daml
+++ b/daml/splice-dso-governance/daml/Splice/DsoRules.daml
@@ -253,6 +253,12 @@ data DsoRules_ClaimExpiredRewardsResult = DsoRules_ClaimExpiredRewardsResult wit
 data DsoRules_MergeUnclaimedRewardsResult = DsoRules_MergeUnclaimedRewardsResult with
     unclaimedReward: ContractId UnclaimedReward
 
+data DsoRules_MergeUnclaimedDevelopmentFundCouponsResult = DsoRules_MergeUnclaimedDevelopmentFundCouponsResult with
+    result : AmuletRules_MergeUnclaimedDevelopmentFundCouponsResult
+
+data DsoRules_ExpireDevelopmentFundCouponResult = DsoRules_ExpireDevelopmentFundCouponResult with
+    unclaimedDevelopmentFundCouponCid : ContractId UnclaimedDevelopmentFundCoupon
+
 data DsoRules_MiningRound_CloseResult = DsoRules_MiningRound_CloseResult with
     closedRound : ContractId ClosedMiningRound
 
@@ -1318,6 +1324,29 @@ template DsoRules with
         return DsoRules_MergeUnclaimedRewardsResult with
           unclaimedReward = result.unclaimedRewardCid
 
+    -- Batch merge of of development fund coupons
+    nonconsuming choice DsoRules_MergeUnclaimedDevelopmentFundCoupons : DsoRules_MergeUnclaimedDevelopmentFundCouponsResult
+      with
+        amuletRulesCid : ContractId AmuletRules
+        choiceArg : AmuletRules_MergeUnclaimedDevelopmentFundCoupons
+        sv : Party
+      controller sv
+      do
+        _ <- getAndValidateSvParty this (Some sv)
+        result <- exercise amuletRulesCid choiceArg
+        return DsoRules_MergeUnclaimedDevelopmentFundCouponsResult with result
+
+    nonconsuming choice DsoRules_ExpireDevelopmentFundCoupon : DsoRules_ExpireDevelopmentFundCouponResult
+      with
+        developmentFundCouponCid : ContractId DevelopmentFundCoupon
+        sv : Party
+      controller sv
+      do
+        _ <- getAndValidateSvParty this (Some sv)
+        DevelopmentFundCoupon_DsoExpireResult unclaimedDevelopmentFundCouponCid <-
+          exercise developmentFundCouponCid DevelopmentFundCoupon_DsoExpire
+        pure $ DsoRules_ExpireDevelopmentFundCouponResult with unclaimedDevelopmentFundCouponCid
+
     nonconsuming choice DsoRules_MiningRound_Close : DsoRules_MiningRound_CloseResult
       with
         amuletRulesCid : ContractId AmuletRules
diff --git a/daml/splice-util/daml/Splice/Util.daml b/daml/splice-util/daml/Splice/Util.daml
index 80ee7987cb..aa9a17a0cd 100644
--- a/daml/splice-util/daml/Splice/Util.daml
+++ b/daml/splice-util/daml/Splice/Util.daml
@@ -206,6 +206,9 @@ instance Patchable RelTime where
 instance Patchable Time where
   patch = patchScalar
 
+instance Patchable Party where
+  patch = patchScalar
+
 mapDifference : Ord k => Map k a -> Map k a -> Map k k
 mapDifference = Map.merge (\_ _ -> None) (\k _ -> Some k) (\_ _ _ -> None)
 
diff --git a/token-standard/splice-token-standard-test/daml/Splice/Testing/Registries/AmuletRegistry/Parameters.daml b/token-standard/splice-token-standard-test/daml/Splice/Testing/Registries/AmuletRegistry/Parameters.daml
index a806f1c567..59dbee421a 100644
--- a/token-standard/splice-token-standard-test/daml/Splice/Testing/Registries/AmuletRegistry/Parameters.daml
+++ b/token-standard/splice-token-standard-test/daml/Splice/Testing/Registries/AmuletRegistry/Parameters.daml
@@ -88,6 +88,8 @@ defaultAmuletConfig = AmuletConfig with
   -- Amount of the AppRewardCoupon contract that a FeaturedAppActivityMarker is converted to.
   featuredAppActivityMarkerAmount = Some defaultFeaturedAppActivityMarkerAmount
 
+  optDevelopmentFundManager = None
+
 -- | Default configuration schedule with single current amulet config
 defaultAmuletConfigSchedule : Schedule Time (AmuletConfig USD)
 defaultAmuletConfigSchedule = Schedule with
@@ -131,6 +133,7 @@ issuanceConfig_10plus = IssuanceConfig with
   featuredAppRewardCap = 100.0
   unfeaturedAppRewardCap = 0.6
   optValidatorFaucetCap = None -- We use the default of 2.85 USD introduced in the upgrade for CIP-3
+  optDevelopmentFundPercentage = None
 
 
 defaultIssuanceCurve : Schedule RelTime IssuanceConfig