What is a Bounty Program In Cryptocurrency And Blockchain Circles?

Bounty programs are essentially programs that are initiated by project teams in the cryptocurrency sphere with the objective of interacting with the prospective users of the project. It is a reward system that incentivizes participation in these interactive activities. It is a system with which these projects reward participants who may be their earliest community members. Also bear in mind that bounties can be initiated at any stage of the project.

Bounties usually have the objective of creating awareness for the project as well as rewarding those that participated in the awareness creation. Bounties are favored by companies involved in cryptocurrency projects because it is a cheaper way of engaging with the community while simultaneously creating awareness for the project.

The terms of a bounty is determined by the project team to suit what they want to accomplish through a bounty program. The flexibility and preference of bounties stem from the fact that many projects pay participants with any tokens which they deem fit. Most times, the internal token of the project’s ecosystem is the preferred form of payment. The advantage of this is that it enables the community to test the project prior to public launch. It also enables the team to create massive awareness about the project while rewarding the participants with the token. Usually, a fraction of the internal currency of an ecosystem is distributed through bounties.

Stages of A Bounty Program

Pre-ICO First stage Of Bounty

At this stage, the bounty is targeted at creating awareness about the project. So the team targets individuals and groups that have the capacity to create publicity within the cryptocurrency community and outside it. The essence is to ensure that investors that have the capacity to invest in the project are made aware of its existence and the benefits that they can derive from such an investment.

Post-ICO Second stage Of Bounty

The strength of a blockchain is in its integrity. This is mainly due to the fact that it cannot be hacked. This feature makes it possible for users to trust the network. However, there are times that a blockchain can be hacked due to flaws in its code. This happens when the developers overlook a critical flaw in its code.

It is a fact that the developers cannot find all the flaws that could be in a code. It is important therefore that third party hackers examine the codes critically to make sure that these flaws are not present.

After ICOs and especially with the deployment of a blockchain, it is important to ascertain the integrity of the blockchain. This is the stage at which the team uses a bounty to bring together hackers whose assignment is to find bugs in the blockchain. These bugs are vulnerabilities that could nbe exploited by malicious players if they’re overlooked by the project.

These hackathons are bounties that only white hat hackers participate in with the sole purpose of discovering these flaws. These hackers are rewarded through such a bounty.

How to Choose the Right Bounty Provider for Your Company?

The way you choose a client to do a job for you is how you approach the selection of a bounty company. It is important that you go through their portfolio to determine their experience. Also, be sure that your budget is within the cost of the service. Also, there may not be many bounty service companies that would accept payment in tokens, so it is important to make the bounty hire an exclusive part of the project budget.

Author: Jofor Humani

Jofor is a crypto journalist with passion for investigative reviews.