Bounty campaigns are perhaps an integral part of every initial coin offering. Bounty is a reward offered by project developers who run ICO for any participation in the project. Yep, bounty means generosity, but it’s not about delivering free coins to everyone. Participation in bounty campaigns usually implies making a certain contribution to the project development or popularization. And the award itself is project’s tokens, which bounty campaign participants receive for their work. So, by helping the project develop, users get a “piece” of cake, baked together.
Why do startups and users need that?
Startups holding an initial coin offering often have to deal with a huge work and expenses, instead of just getting money from all over the world. Not only technical development but also marketing activities do require significant investments, so developers are forced to look for ways to improve the efficiency of the use of funds. A possible solution could be the distribution of some tasks among a large number of users and rewarding them with a certain number of tokens.
Startups often mention bounty campaign terms and conditions in their white paper. These includes the amount of a reward for a particular contribution, deadlines, timing and ways of reporting. A part of the total number of tokens issued by the project usually goes for bounty purposes. You may have seen all those token distribution diagrams, where most of the tokens are available for sale during an ICO, some a reserved for developers and some are supposed to be credited to bounty campaign participants.
For the participants a bounty campaign can be a good opportunity to get tokens of a promising project without investing a single penny, but a little (or a lot of) effort. Of course, participants may face risk that an ICO is a scam and after a bounty campaign is over nobody will receive their tokens. It can also happen that even if participants get their rewards, there will not be any real benefit from holding it. Anyway, there are always such risks on the cryptocurrency market, and many crypto enthusiasts desire to receive free coins more than worry about wasting their time. In any case, before joining any bounty campaign, one should be careful as much as before making investments.
What are participants supposed to do?
Bounty participants can do different things. Startups often offer to translate project website, its documentation (especially a white paper), advertising and marketing materials. Usually bounty campaign includes various activities in social networks. Participants are encouraged to write articles, operate blogs and make publications (if their accounts are popular), comment on a project, like and share posts. Tokensale campaigns usually have their “embassies” in many social networks, forums and platforms, such as Bitcointalk, Reddit, Facebook, Twitter, Instagram, Youtube, Telegram, Medium, Steemet, etc. (recently, however, some platforms have restricted or banned ICO advertising). If the project accounts are active, there are hot discussions and many comments, it will make a startup community to grow and more and more people will know about the project.
Bounty campaigns can also include some assistance in the technical implementation of a project. Users can, for example, fix bugs, test a product, make referral programs or help develop a landing page.
So what to do?
Yes, sometimes you can get tokens just for signing up on a website or joining a Telegram channel. In addition, users can do more complex and useful things to help implement a particular project and, respectively, receive a bigger reward. Bounty campaign is in fact, a good way to distribute the labor and production resources necessary to implement the project or its part between the wide range of users all around the world. That may allow developers to save money, and “bountists” to get some coins without making any investments. However, we still have fraud, scams and simply unsuccessful projects, so there is always a risk that, after translating dozens of white paper pages or spending a lot of time looking for bugs, the participants will end up getting nothing valuable or even nothing at all.