If you have been involved in the cryptocurrency space then you have probably heard of bounties. Although a simple concept they are extremely lucrative.

Now you are probably wondering, how do I get piece of the pie? Don’t worry, in this article I will be answering that question and much more. So without further ado, let’s jump right in.

Crypto bounties are incentive programs launched by projects. They reward community members who perform specific tasks to benefit the project.

What are crypto bounties?

Simply put, crypto bounties are reward mechanisms that incentive good behavior. They are a vital component of many cryptocurrency projects as they outsource development and foster community involvement.

Not to mention, they are a great way for garnering attention toward a new project. This is because a portion of the supply of the token is set aside as rewards. Moreover, they utilize various social media campaigns and promotional measures to facilitate advertising.

Types of bounties

Bug bounties – these programs offer rewards to participants who report bugs. This provides projects with additional verification of smart contract code while rewarding community members. Ultimately, this helps to prevent exploitation and hacks.

Paid promotion – often times, projects reward individuals who promote the project. For instance, this could be a social media campaign that assigns token rewards to people who share and like tweets. This raises the awareness of the project by generating buzz.

Content creation campaigns – as the name suggests this bounty campaign rewards content creation. For NFT projects this could be unique artwork or for decentralized finance projects it could be the creation of an intuitive user interface. The content requirements vary from project to project but the rewards can be extremely lucrative.

Risks & criticisms of bounty programs

Hacks – As a result of the complex nature of smart contracts, hacks are rampant in the space. Malicious actors can exploit bugs in the code. On a side note, that is why it is vital to use a hardware wallet. The hardware wallet I recommend is the ledger nano X. You can check out my review by clicking here

Phishing scams – in essence, this common scam imitates legitimate bounty websites. When users connect and interact with the fake bounty website their crypto wallet becomes compromised and their funds are stolen.

Exploitation – many critics scrutinize the exploitative nature of bounty campaigns. As development is outsourced it can be seen as a shortcut that takes advantage of the community’s good intentions. Moreover, they often promote fake tokens with the sole purpose of extracting money from unsuspected participants.

Where to find bounty programs?

Most of the major cryptocurrency platforms host bounty programs. Here are a couple of examples:

Etherum.org – the main website for Ethereum has a bug bounty program that is publically available. Anyone can participate and the rewards are upwards of $200,000.

Payouts are determined by the severity of the bugs, from $10.000 for low severity to $250,000 for high severity. Moreover, there is a leaderboard whereby you can track the community’s contributions. Points are given for each bug reported and then participants are ranked.

Gitcoin.co – this is an open platform that allows anyone to post bounties. Consequently, this provides a one-stop shop for finding lucrative bounties. Users can filter by difficulty to find the project that fits their skill level.

Moreover, there are various advanced filters. For instance, the type of bounty, time commitment, permissions, etc. Overall, this is a fantastic platform for bounty hunting.

FAQ

What’s the difference between bounties and airdrops?

Essentially, airdrops are free rewards that don’t involve the completion of complex tasks. In most instances, rewards are “airdropped” directly to the user’s cryptocurrency wallets.

For instance, wallets that hold the platform’s token are automatically eligible for rewards. Moreover, unlike bounties, they can have no strings attached.

On the other hand, bounties require the completion of specific tasks. They often require extensive knowledge about the space and technical expertise. As a result, they usually pay more than airdrops.

What are crypto bounty hunters?

Bounty hunters are individuals in cryptocurrency who seek out bounty programs. They participate in multiple programs simultaneously while optimizing for the highest payouts.

Thanks to the low barrier to entry and fantastic rewards, bounty hunting is a great opportunity for the technically savvy.

If you want to view this article in video format then check out my youtube video below:

Conclusion

As you can see, crypto bounties are a fantastic way to make money in the space. The barrier to entry is low and it can be extremely profitable. Moreover, they provide a new way for developers to promote their projects and foster an active community.

Overall, if you are looking to earn money in the cryptocurrency industry then they are worth checking out. I hope you found this article useful and thanks for reading it.

Want to learn about DAOs? Click here to read my previous article.