Beginner’s Guide: What is a Bounty?

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In today’s article, we will focus on bounty in cryptocurrency.

The term Bounty came from the gaming world. When a goal is reached, the reward is given to the bounty hunter.

The same concept has been carried into cryptocurrency. Marketers, especially, are interested in taking advantage of bounties. Right now, whenever an ICO goes live, it is accompanied by bounties.

In short, it has become an important part of the digital marketing.

What is Bounty?

Bounties in cryptocurrency is a program through which incentivizes positive behavior and action towards the company product. In the case of cryptocurrency, it generally happens in the ICO phase.

So, for example, if a company releases a new program or service, they will introduce a new bounty program. The bounty program will have a proper explanation of what actions can earn you specific rewards. Both the activities and the rewards will be defined ahead of time. The bounty hunters (people who do bounties) exchange their time and effort for the rewards.

For companies, there is nothing to lose. First of all, they don’t have to pay upfront for the services. Secondly, it works on its own. There is no need for talent search or screening. Anyone who reads the details can pick up and start working on it.

This simple idea is prevalent in the cryptocurrency scene. It helps both companies and individuals who are seeking lucrative rewards from them.

Bounties generally don’t have to be the part of the ICO. However, most of the time, it is run during an ICO. Some companies do run bounties throughout their life. It all depends on how to the company’s market strategy is planned out.

Are bounties bad?

Bounties can be a bad thing. According to many experts, they can be manipulated by the companies to bring more traffic or raise more money. Companies, in their ICO stage, can hire the best bounty hunters. In return, they get better marketing reach. Generally, these bounties relate to sharing content on social media platforms. And, if you hire the best ones, it is bound to grow.

By attracting big bounty players, the smaller ones also get drawn. Overall, the ICO receives a considerable boost which might not be the best thing for the whole cryptocurrency community.

Let’s list some of its bad impact below.

  1. It can create a false sense of community. Everyone here is looking for benefit.
  2. The bounty hunters might sell off the tokens after it releases on the market.
  3. The readers get saturated and couldn’t differentiate from a promoted post vs. a genuine post.
  4. ICO-hypes are created artificially, and this can lead to inadequate investment in the cryptocurrency ecosystem.
  5. Pump and dump become more common in the market

However, all of these problems can be eradicated with the help of proper bounty program framework. In the framework, the companies should mention their intent and way to track all the bounty contributions.

How to earn money from Bounty?

There are many ways bounty activities that can be asked by companies for their ICO. Let’s list them below.

  1. Social Media Campaign

In this activity, the bounty hunter does social media activities. Their main aim is to bring interaction and improve campaign engagement using social media.

  1. Article Writing

Article writing is also a popular activity. Bounty hunters write articles related to the ICO and share it on blogs and other websites.

  1. Bitcointalk Signature Bounties

The bounties are released when the bounty hunter puts ICO signature code on Bitcointalk. It is a quick way to get stakes in the ICO.

  1. Translation Bounties

In this activity, bounty hunters translate the project into various regional languages such as Hindi, German, Dutch, etc. They need to translate key documents including white paper, website or the Bitcointalk ANN thread.

  1. Bug reporting

New projects are always susceptible to bugs. By giving bounties to anyone who finds bugs can improve the rate of finding bugs and fixing them.

Are you interested in getting into one?

Getting into a cryptocurrency bounty program is easy. All you need to do is create an account on Bitcointalk. You will tons of projects to follow and do work on!

You can also follow Icodrops and BountyOne. They list all the upcoming and old bounties.

Bounties are an integral part of the whole cryptocurrency ecosystem. However, it does have its disadvantages. In 2018, we will see more companies using bounties.

Are you familiar with Airdrops? If not you should check out our article about what is an Airdrop?.

So, are you going for it? Or just learning about it? Comment below and let us know.

 


About Author

Nitish holds a BSc in computer engineering. He is a blockchain enthusiast and in spare time likes to read about the moon. His articles have published on Dzone, InfoWorld, and Hongkiat.

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