A bounty campaign is an offer made by many startups, websites, and software developers which enables individuals to receive recognition and compensation for performing marketing tasks, reporting bugs or improving a product/service. It is akin to a barter trade of sorts; the company gives rewards to a person and the person in return does some simple tasks for the company.
Within the cryptocurrency scene, bounties have become a useful part of any ICO campaign. Many start-ups usually incorporate a bounty program as part of their ICO campaign. During the bounty program, the ICOs provide compensation for a number of tasks spread across marketing, bug reporting or even improving aspects of the cryptocurrency framework. The reward is usually in the form of cryptocurrency tokens or fiat currency (this option is however rare). The cryptocurrency space has proved to be a massively conducive environment for bounty programs. This is because it offers great rewards and incentives for both the cryptocurrency start-up and individuals alike.
Types of bounties in the ICO space
Generally speaking, there are two types of bounty programs in the ICO space: Pre-ICO bounties and Post-ICO bounties.
1. Pre-ICO bounties
The main objective of pre-ICO bounties is to generate hype and awareness about the token offering of a blockchain startup. Therefore, pre-ICO bounty campaigns are often exclusively focused on marketing tasks. The common Pre-ICO bounty activities include:
· Social Media Campaign Bounties
This involves activities that promote the ICO on the social media accounts of participants. The rewards earned depend on the engagement levels generated by such posts. This can be in the form of retweets, likes, shares, views, and comments. The popular social media platforms used for ICO bounty programs include Facebook, Twitter, and YouTube.
· Article Writing Bounties
This is for participants who have blogs with a large number of followers and readers. ICO bounty programs can offer rewards to bloggers to write featured articles about the ICO on their blogs. Just like the social media bounty, the rewards will be dependent on the engagement level of the articles and blog posts.
· Bitcointalk Signature Bounties
This is a popular bounty for many ICOs. It is open to participants of the Bitcointalk forum. The ICO releases a signature with a code embedded in it. The ranking of the participants who post this signature determines the number of stakes they get.
2. Post-ICO bounties
Post-ICO bounties are aimed at improving the product or service of a startup by getting direct feedback from the crowd. These bounty campaigns often reward bounty hunters with currency instead of tokens. Some of the common types of Post-ICO bounty programs are as follows:
· Translation Campaign Bounties
This involves translating all documents pertaining to the cryptocurrency project as well as moderating different forum groups. It is the perfect bounty program for native speakers of languages like Japanese, French, Spanish, Dutch, and German etc. The common translation activities include cryptocurrency website, white paper and the Bitcointalk ANN thread.
· Bug Reporting Bounties
Apart from being an effective bounty campaign activity, bug reporting also helps the developers. A good bug report clearly and concisely identifies issues with the cryptocurrency software or platform.
It is important to note that there isn’t a hard and fast rule as concerns the activities for Pre-ICO and Post-ICO campaigns. Cryptocurrency ICOs can decide to use any of the aforementioned activities in either Pre or Post-ICO bounty programs.
It is common for a cryptocurrency start-up to set aside a percentage of the total coin supply for the bounty program. Information regarding this amount can usually be found on their website, white paper or Bitcointalk ANN thread.
Please keep in mind that the pre-ICO/ post-ICO category is just a concept that we thought of for advising blockchain startups. This is by no means a ‘rule to be followed’ and many startups actually mix both categories in their bounty program.