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Each app has 50 promotional codes but I don't think they're supposed to be used in that way. It's also possible to 'gift' an app to another user using iTunes so the author would be able to use that mechanism to buy copies for the contributors.

Developers get a limited number of promotional codes that an be redeemed on the app store to get the app for free.

The supporters will still d/l the app from the app store, but for free.

It's 'free' so it's not selling. Developers are allowed to 'give away' copies of their apps with promo codes. Obviously this is super-gray area, but it's 'technically' not disallowed.

Well, giving out product in exchange for microinvestments with no return sounds an awful lot like "selling" to me.