Crypto bounty programs and how it work.

The word bounty has been around for thousands of years and it usually means catching a wanted criminals. The reward for this is called bounty and the people who engage in this sort of hunt are called bounty hunters.

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This will be surprising that same principle can be apply in the crypto world because someone may ask who are these criminals been hunted? But bounty is not necessary about hunting criminals and it can be apply to almost any working environment with the crypto world not been exceptional, still confusing? I will explain better below.

Crypto bounties can be seen as a tokenized incentives and also reward mechanisms use by blockchain projects. These bounty programs are carried out by people called bounty hunters, and they are paid handsomely whenever they complete a specific task on a program. They can chase after several reward programs at the same time but they usually prefer the best paying program.

An example of this program is when Ethereum has a bounty program which main objective is to help identify bugs in its protocol. They listed the bounty program in the respective community to locate bugs and to reward anyone who is able to come up with any vulnerability. The primary objective of bounty program is to help fix bug.

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It was noticed that bounty program create buzz amongst users and developers, which can help promote a project so many project began to employ bounty programs as prosecutors to their ICOs, this create hype about a token even before been lunched. The above explanation seem like an airdrop but it not, most people confuse bounty program and airdrop but they are few differences.

How bounty programs helps crypto projects?

Bounty program are often use to promote initial coin offering (ICO) of tokens. Just like an IPO, ICO helps entrepreneur to collect funds which is use to lunch a new cryptocurrency. So in return, some amount of this tokens are given to investors unlike IPO, the project remain private after ICO. So it remains fully in the hands of investors and developer and they simply benefit when the token value begin to raise.

How bounty program works.

This kind of programs are usually pronounce by the entrepreneur or the owner of the project who is looking to pushing the ICO. This is usually done by announcing a promotional campaign which will include all interested investors which will perform a specific tasks and the reward is tokens. These tasks ranges from uploading pictures and posting promoting videos to be review and published.

If very successfully, some project will still continue to employ the use of bounty programs even way long after ICOs. So at the stage it mainly locating bugs in their code.

The major difference between crypto bounty programs and airdrops.

These two are similar but the major difference between the two lies in the minor distinction of tasks and rewards. For example bounty program tasks has to be repetitively perform until the campaign is live. Airdrop on the other hand, the tasks are usually a one-time event.

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Another difference is that Airdrop does not need a specific skill to complete its tasks because they are usually easy to finish. However, in bounty programs, you need skills, time and most importantly concentration to be able to complete a task so we can say bounty programs are more difficult to complete than airdrop.

Where can you find crypto bounty programs?

Bounty program has become so popular since the success of Bitcon but some bounty programs has been linked to some fraudulent program where it been seen promoting fake tokens. Some of these programs are been scrutinized by the Securities and Exchange Commission because of their similarities related to pump and dump schemes.

So bounty hunter are now been selected based on their skills and you need to search for credible programs. So to find a legit project, they is a page which is dedicated exclusively for bounty programs such page can be found on Coinbase and Ethereum.

Conclusion

Bounty program sound really cool to me and been able to earn for completing a specific task is really great. We have since how these programs have been use to promote some project which is okay so far it is legit. I have come to the end of article and I hope we all learn a thing or two from it.

Thank you reading.

NOTE: 10% payout goes to the community account.