Learn about bounty programs and how they can effectively help promote your ICO
In recent years, initial coin offerings (ICO) have become the go-to crowdfunding method for many blockchain-based startup companies. Not only do ICOs aid in drawing investors to fund a budding business, they also allow startup companies to actively contribute to the blockchain community while being able to innovatively introduce their own products and services.
However, with the rapidly increasing adaptation of the blockchain and cryptocurrencies, the competitiveness of the myriads of ICOs all happening at the same time tightens. While the initiators of ICOs can ramp up their promotional efforts to persuade people to participate, their efforts can only go so far. Although, many startups have found a cost-effective way to promote their ICOs while leveraging their own cryptocurrencies by way of bounty programs.
What are ICO bounty programs?
ICO bounty programs are reward mechanisms offered by startup companies to participants of their ICO campaign. These companies provide incentives or compensation to people in their native coin for performing certain tasks. With a bounty program, it’s typical for the initiating startup company to set aside a percentage of the total coin supply for such incentives and compensation.
The tasks in a bounty program revolve mainly on promoting and marketing the ICO; the tasks can also spread across bug reporting and improving various aspects of the initiating company’s blockchain platform or product.
Benefits of ICO bounty programs
ICO bounty programs allow the initiating company to leverage their own cryptocurrency platform to maximize their marketing and promotional efforts. Through bounty programs, startup companies will be able to promote their ICO campaign to a much wider audience through a combination of word-of-mouth marketing and various digital marketing strategies carried out by the participants themselves.
People will not only be made more aware of the ICO, they will also get to know more about the company, their story, their unique offering, and their products and services—all while being able to receive monetary benefits through coin incentives. It’s a win-win situation for both the startup company and their audience.
Types of bounty programs
Bounty programs are usually not done together with ICOs. Companies either do a pre-ICO bounty or a post-ICO bounty, but there have been some instances that bounty programs were done during the actual ICO campaign periods. Here are some of the common types of bounty programs:
1. Pre-ICO bounty programs
Pre-ICO bounty programs, as the name suggests, are those that are done before the ICO campaign period. These types of bounties are marketing-focused, and the main goals are to create awareness and to generate support from the Internet community for the ICO before it actually begins. Some examples of pre-ICO bounties are as follows:
– Bitcointalk signatures – This type of bounty is popular with many ICOs and is open to participants of the Bitcointalk forum dedicated to ICO bounties. The initiating company of the ICO releases a signature with a code embedded in it. Participants who post this signature are ranked accordingly, and their rank determines the number of stakes they get for the respective coin offered.
– Social media campaigns – Participants are encouraged to promote the ICO on their respective social media accounts, commonly on Facebook, Twitter, and Instagram. Rewards are earned depending on the level of engagement (likes, comments, or shares.)
– Content creation – This usually includes writing articles or blog posts, creating YouTube videos, and designing infographics about the ICO. Rewards are offered to content creators and additional rewards are also given depending on the engagement level of the content.
– Referral programs – Participants are assigned a referral ID and are rewarded when they refer a friend to the ICO. This may also be done during the actual ICO campaign period.
2. Post-ICO bounty programs
Post-ICO bounty programs are done when the ICO campaign has been completed. These types of bounties are focused on improving the initiating company’s cryptocurrency or blockchain project, products, or service through community feedback. Some examples of post-ICO bounty programs are as follows:
– Bug reporting – Participants who can provide a detailed bug report that concisely identifies the issues with the platform or other components of the project are rewarded.
– Crypto airdrops – Airdrops are the distribution of free coins or tokens to the participants of the ICO. These types of bounties often require social media posts for promotion. Airdrops can also be done pre-ICO to generate awareness on the ICO campaign or the coin itself. The more people know about the ICO, the more likely it is for the coin price to appreciate.
Bounty programs have become an integral part of ICO campaigns, not only for promotional purposes but also to uphold a sense of community among those who chose to participate in the endeavor. More than just a rewards program, bounty programs allow participants to have a more active involvement in the initiating company’s blockchain project, further fostering its community and the continuing development of the emerging technology.
– Article written by Tinny