Initial Bounty Offerings are a way of leveraging crowdsourced work through payments in cryptocurrency tokens. Professionals get paid in a startup’s tokens while contributing back to the project without a formal work contract. IBO’s are usually informal and implied in ICO projects. A certain amount of tokens is allocated just for bounties in most ICO’s where community-sourced professionals get paid for all sorts of jobs like logo design, social media promotion like retweeting messages and generating buzz, posting to Telegram groups and so on.
Bounty seekers join IBO’s for multiple reasons. Either they’ve already invested in the respective ICO and wish to drive the value of the token up by promoting it, or they’re simply professional bounty hunters who make a living from such payouts or they can be mere users who get paid a little extra to do what they’d already do on their own, promoting interesting crypto projects and startups.
An IBO is a lot cheaper to execute than an ICO. It allows individuals or small companies without the financial means to actually insert a new product in the market, by recruiting informal work through payments in tokens. Although still uncommon, IBO’s are a nice alternative for small businesses to get started in the cryptocurrency crowdsourcing game. A lot of talent can be found in countries like India, China, Taiwan, Brazil, South Africa and recruiting internationally would be prohibitive if it weren’t for cryptocurrency technology.
We hope this brief article has provided a clearer view of IBO’s and how they can be leveraged by small budget teams in order to source high quality work from the cryptocurrency community.
Illustration Credit: Testbirds GmbH