What are Bounty Programs in ICO campaigns ?

  One of the key goals of any marketing strategy is to ensure as much  market penetration as possible for the product/service. By so doing,  many people get to know about the company, what they offer and how to  interact with their products and services. This helps to increase  word-of-mouth advertising which leads to increased sales. Since the dawn  of the digital age, there has been a lot of emphasis on social media  marketing. The use of internet-based platforms to promote a business. Bounty programs are usually an integral part of any digital marketing and promotional enterprise. 

What are Bounty Programs

Bounties  in the digital word take their origin from online gaming platforms that  offered rewards for participating in their game development.  Bounties are essentially incentivized reward mechanisms offered by  companies to individuals. What this means is that a company introducing a  product or a service offers some rewards to people in exchange for  performing certain tasks. 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. It is a veritable means of advertising for  many companies.  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. 

The ICO Bounty Framework

It  has become something of a tradition for cryptocurrency ICO campaigns  that incorporate bounty programs to either do a Pre-ICO bounty or a  post-ICO bounty. Bounties are generally not done together with ICOs. 

· Pre-ICO Bounty Programs

Like the name implies, these are bounty programs that are carried out  before the actual ICO. They are usually done to get the buzz going and  to give the cryptocurrency project an improved presence on social media  platforms. It is all about creating awareness for the cryptocurrency ICO  and to get the word-of-mouth going. The framework is such that informal  advertising channels are utilized to increase market penetration. The  aim of such bounties is that as participants go about carrying out the  various activities, the people in their circle begin to know more about  the cryptocurrency. The common Pre-ICO bounty activities include: 

1. 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. 

2. 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. 

3. 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. For most bounty programs, only people on Bitcointalk  who are Jr. Members and above can participate. 

· Post-ICO Bounty Programs

At  this point, the ICO has been completed and funds have been raised. Now,  it’s all about making improvements to the cryptocurrency projects based  on community suggestions. Post-ICO bounty programs are aimed at  improving feedback from the project community. Some of the common types  of Post-ICO bounty programs are as follows: 

1. 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. 

2. 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. 

How to Get Involved in ICO Bounties

ICO bounty programs are a great way to participate in the market and  earn tokens. These tokens can even be exchanged for fiat money. Most of  the activities aren’t really technical in nature as they rely on common  internet activities and interactions. One of the best ways to get  involved in bounty programs is via the Bitcointalk and Cryptocointalk  forums. Almost all ICO bounties are listed here. 

The Future of Bounty Programs

As ICOs rose in popularity in 2017, so did bounty programs.  The allure of getting free tokens for promotional activities was  something that appealed to a lot of crypto hobbyists. However, bounty  programs have come under scrutiny from some financial regulators like  the United States SEC. The reason for this is that bounty programs  essentially encourage people to participate in a commodity that has a  financial risk.  The main point of the SEC’s scrutiny is based upon the Howey Test and  how it applies to bounty programs. The fact that profits come from the  efforts of a third-party promoter (in this case, the participant in the  bounty), then the bounty campaign constitutes an investment contract  transaction. This, therefore, means that almost all bounty-promoted  tokens are in fact securities, and are therefore subject to the SEC’s  securities regulations.  --Popular websites to find Bounty ICO campaigns list    

• https://bitcointalk.org/index.php?board=238.0
• https://www.facebook.com/groups/183362665591463/

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