Crypto Bounty Programs: Earn by Contributing
Bounty is a reward that users receive for completing tasks set by a particular blockchain or project.
What is bounty?
Cryptocurrency bounties are a reward mechanism used by blockchain projects to ensure the successful completion of certain tasks set for the network. Originally, bounties were created as a marketing tool to attract users to participate in the execution of validation services for blockchain projects. Today, cryptocurrency bounties have gone far beyond just a marketing tool.
The principle behind bounties is simple. A project that wants to promote its ICO announces an advertising campaign, during which users perform marketing actions and receive tokens in return. Such marketing actions can be anything from posting photos or videos promoting the project to posting reviews on forums and online community boards. Users receive free or discounted tokens for completing these marketing actions. In 2017 and 2018, “bounty” reward campaigns were a huge phenomenon during ICOs.
The U.S. Securities and Exchange Commission (SEC) has ruled some ICOs and bounty reward programs illegal and have been used as evidence of wrongdoing in courts.
Nevertheless, despite numerous contentious cases, bounty reward programs continue to be a very common marketing tactic for promoting new tokens. Moreover, some blockchain projects include bounty rewards even after the successful launch of a token. Post-ICO bounty schemes are designed to encourage project development. During them, developers get an incentive to learn the project code and localize bugs. In addition to this, translation rewards can be offered to increase the global availability of the project.
Numerous bounty programs have spawned a new identity in the cryptocurrency world – the cryptocurrency headhunter. These are people who pursue multiple bounty programs, seeking to benefit from all of them simultaneously. Cryptocurrency bounty hunters are always chasing the most lucrative bounty programs and seeking to reap the rewards. Although there is much controversy surrounding bounty programs, this marketing strategy is still widely used by cryptocurrency projects.