It is annoying that the new IRS defi document does not contain page numbers. (source: https://public-inspection.federalregister.gov/2024-30496.pdf) But pdf readers do.
And I note that on page 41, they clarify that a software developer is not a broker unless they get "consideration" (i.e. money) for their code. Yay!
I wonder if this means defi service providers will create a "non-profit arm" solely responsible for creating and running a frontend service
Only the frontend services are categorized as brokers, and only if they make a profit
So just keep that part profit-free and you're gold
defi services can still profit from other parts
e.g. they can continue taking a % of staking rewards (that's the app layer, not the frontend)
they can still run "searchers" to front-run customers
they can still receive airdrops
it's only *frontends* that mustn't make a profit
