Alright Boba Fett, grab your laser gun and grappling hook – it’s time to earn your reward. But this time you aren’t after Hans Solo or a bounty of imperial credits from Darth Vader, you’re after your favorite cryptocurrency and you don’t have to risk your life in high-speed travel across the galaxy.
So, if you aren’t expected to do combat with Jedi and clone an army of yourself, what are bounty programs in the cryptocurrency world? Well, the concept is similar to traditional bounty hunting. Just as a bounty hunter is offered a reward for apprehending some wanted individual, crypto bounty hunters get rewards for completing a wide variety of tasks that help spread the word about an ICO or improve its product.
This most commonly means of accomplishing this is to set up a bounty program for social media, rewarding hunters for posting, sharing, reviewing or even blogging full articles. It really all depends on what you most need to have taken care of as a business. You can even include developers in your bounty program by rewarding them for reviewing your code in search of flaws or fixing up bugs that you and your team are struggling to get to. The bottom line is that bounty programs are a cheap way to get important work done, marketing or otherwise, and a unique way of engaging with your community by giving them a stake in the project.
Which brings us to our next point: how bounty distribution works? If you’ve done a bit of digging already, you’ve probably come across the terms “entries” and “stakes” but what are those? Well, they’re exactly the same thing: your reward.
ICO’s generally set aside a specific amount of currency for their bounty programs. But because they don’t know how many hunters will join the program, it’s impossible to set specific amounts to be rewarded for each task. Instead, each hunter is rewarded in entries, or stakes, that represents a percentage of the total number of tokens set aside the bounty program, otherwise known as the bounty pool.
At the end of the program, some simple math is used to determine what each entry is worth. In the event that you were the only participating hunter, you’ll get the full amount of bounty tokens no matter how many entries you earned.
And what are airdrops? Airdrops are similar to bounty programs in many ways but work a bit more like giveaway campaigns. In order to receive tokens in an airdrop, you can stipulate that participants share a post on social media, sign up for a newsletter or help spread the word in some other way. Participants are then given free tokens, general an even slice of the number of tokens you decided to give away beforehand.
In both approaches, tokens are awarded to participants after the ICO and token release.
Deciding which approach is right under which circumstances depends on having a well-thought-out strategy. The Emissary Guild can help your business make those kinds of decisions, and we’ve got lots of experience in managing bounty programs. If you’ve got questions, don’t hesitate to let us know.