Understanding Initial Bounty Offering (IBO)
An Initial Bounty Offering (IBO) is a fundraising method in which individuals are rewarded with free or discounted tokens instead of purchasing them with fiat currency, as is the case with initial coin offerings (ICOs).
Incentivized Contribution
In an IBO, individuals contribute their time, skills, and services to support a project.
They may engage in translation, marketing, business development, human resources, etc.
By completing these tasks, participants can receive tokens as a reward.
Harnessing the Power of Emotional Investment
By offering tokens as rewards, IBOs create a sense of emotional investment among participants, leading to increased dedication and motivation to see the project succeed.
This approach can be more effective in building a community around the project.
Participants who receive tokens through an IBO can choose to hold onto them in the hope that their value will increase or cash them out later when they are listed on an exchange.
Post-ICO Engagement
After the completion of an ICO, bounty programs may be utilized to gather feedback on the project’s code or compensate individuals for their promotional efforts.
Additionally, bug bounties may be offered to incentivize coders who identify flaws in the blockchain, with rewards often reaching significant amounts.