Initial Bounty Offering: Rewarding Contribution to Crypto Projects
Initial Bounty Offering (IBO) is a new way of launching a project in which people invest skills rather than money in the platform.
What is Initial Bounty Offering?
In Initial Bounty Offering people have to buy tokens with fiat money, whereas in Initial Bounty Offering people get free tokens or discounted tokens in exchange for their services.
This means that they are emotionally involved in the project and more determined to make it a success, and this approach can be more effective in building community.
As a consequence, NDIs imply greater mental commitment on the part of the recipient. Those who have received tokens will be able to cash them in later, when they become available on the exchange, or hold on to them in the hope that their value will rise.
Once the ICO programme is completed, the rewards can be used to obtain feedback on the cryptocurrency project’s code or to compensate for efforts to promote the coin. Coders who manage to identify flaws in the blockchain can also receive bounties for bugs, and these rewards can run into many thousands of dollars. Some well-known cryptocurrencies – such as Zcash and Ethereum – have used Bounty programmes to reward developers who have helped develop the blockchain.