The concept of bounty comes from the gaming world, where a reward is given on the completion of certain tasks by gamers. It has been adapted by the ICO world to maximise the reach of their marketing campaigns and adoption of their token currencies.
ICO bounty is basically a marketing strategy that allows blockchain projects to allocate a specific amount of their tokens for promoting their upcoming ICO. It involves completing simple tasks, jobs or projects in return for the project’s tokens or, rarely, fiat currency. The tasks may involve promoting an ICO on social media, translating the content in other languages, etc.
Bounty programs reduce ICO marketing costs for blockchain projects, while increasing engagement within the crypto community.
Here’s a look at factors that impact the success of an ICO bounty program.
Lack of Promotion of Bounty Program
Defining tasks, rules and rewards for the bounty program isn’t enough, it needs promotion like your ICO token. Bounty program should be promoted on relevant channels like Reddit, Telegram, Bitcointalk, your own website and on other websites related to cryptocurrency and blockchain. The program requires a targeted audience, so choosing the right channels for promotion becomes important.
Very Liberal Rules
Rules should be simple and clear about the promotion of the ICO. For instance, participants cannot do any negative publicity and if they do, they will be disqualified and won’t be eligible for any pay out. The rules for comments should also be very specific to eliminate the illusion of spamming.
Improper Rule Formulation
Rules should be framed after thorough analysis of the market. For instance, if you need your content translated, there should be rules such as Google translator should be avoided. For content campaigning, there should be strict rules regarding copy paste and plagiarism, while emphasising the importance of fresh and unique content. To prevent the participation of fake accounts in social media campaigning, each participant should fulfill certain criteria, such as a certain number of friends or followers, certain years on a platform etc. Adhering to the rules will improve the quality of your campaign and will give you value for money.
Lack of Communication
Communication between you and the participants in the bounty program is key to getting the job done well. Just announcing the bounty program isn’t enough. You have to maintain constant communication before, during and after the ICO bounty campaign. Various social media platforms can be used for constant engagement. It will not only help respond to queries from the bounty hunters, it will also build the community up for the success of your ICO project.
Reward Based on Participation
The rewards should be based on the quality and quantity of tasks completed, rather than just for participating in the program. You cannot reward someone just for replying on your posts or for posting irrelevant content. If you hand out rewards based on the quality of participation, you drive participants to do their best.
Prioritise Your Top Performers
Inability to reward your top bounty hunters may affect their morale and overall quality of work. Provide special rewards to your most active, effective and influential bounty hunters. These performers can be converted into brand ambassadors by creating hype around the project. This will encourage your top performers to continue giving their best, as well as motivate other participants to work harder to receive the bonus.
Inability to Filter Out Cheaters/Spammers
A lot of fake accounts are present online, who try to misuse the system. It takes away the rewards from genuine users, who are trying to help enhance audience engagement for your ICO. There should be strict rules and safeguards to detect and ban cheaters, so that participants who actually did what they were supposed to are rewarded.
Just thinking about how to launch an ICO bounty program will not yield results. It demands vision and an organised approach. The aim behind bounty program should be both ICO marketing and building relationships with the blockchain community. It is a give and take process.