What Is an Initial Bounty Offering (IBO)?
An Initial Bounty Offering (IBO) is a unique concept that rewards individuals with free or discounted tokens in exchange for their services. Unlike initial coin offerings (ICOs) where tokens are purchased using fiat currency, an IBO allows enthusiasts to contribute their time and skills in areas such as translation, marketing, business development, or human resources.
Engaging in an IBO not only provides individuals with tokens but also emotionally invests them in the project, making them more motivated to ensure its success. This approach effectively builds a strong community around the project. However, participating in an IBO requires a higher level of commitment from the receiver.
Once individuals receive tokens through an IBO, they have the choice to either cash them out when the tokens are listed on an exchange or hold onto them in the hopes of their value increasing over time.
After the completion of an ICO, bounty programs can be implemented to gather feedback on the project’s code or compensate individuals for their efforts in promoting the coin. Additionally, coders who identify flaws in the blockchain may receive bug bounties, which can result in significant monetary rewards.
Well-known cryptocurrencies like Zcash and Ethereum have successfully utilized bounty programs to reward developers who contributed to the development of their respective blockchains.
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