Bounty programs are held as a part of an ICO. Participants of Bounty programs, also called Bounty Hunters, receive rewards for specific activities that can include marketing or development related tasks, such as bug hunting. Usually, Bounty participants are rewarded with the companies tokens and more rarely – with fiat.
What is a Bounty program
Bounty programs are held to attract more people to the development of a particular project. Bounty hunters can be involved in the development in a number of ways ranging from community management and simple marketing efforts to complex coding tasks.
Some common tasks that can be completed as a part of a Bounty program are making retweets and reposts of official social media content of a project or finding bugs such as missing links or even typos on the website. More complicated tasks are translation works, creation of unique content and development efforts.
Bounty programs are handy marketing tools, but apart from that they also help increase the speed of project development. One can think about it as hiring a crowd of freelancers and allowing them to do work for token incentives.
How bounty programs work
The more complicated the task is, the more tokens a bounty hunter will receive. The amount of gained tokens is usually calculated in stakes. Bounty managers keep track of work and validate compilation by participants, who typically receive the tokens after the ICO is completed successfully. Usually, around 1% of the issued tokens is devoted to Bounty program rewards.