A bounty is an incentive program in which a blockchain project distributes its own tokens or coins to participants for performing actions useful for promotion. Historically, such campaigns became a mass-market tool during the ICO boom, when startups needed to quickly build a community and raise awareness before the token sale began.
What actions are rewarded
- posts, reposts, and mentions on social media;
- writing articles, reviews, and translations of documentation;
- finding software bugs and vulnerabilities (bug bounty);
- attracting new participants through referral links.
The reward is usually recorded in points or fractions of a token and distributed after the campaign ends. For the project this is a relatively inexpensive way of organic marketing, and for participants it is an opportunity to obtain assets without a direct purchase. It is important to understand that the value of the received tokens is not guaranteed: it depends on the project's further development. That is why bounty campaigns should be approached carefully, assessing the team's reputation and the realism of the stated goals.
