In the world of cryptocurrencies, people are usually familiar with Initial Coin Offerings (ICOs), a way of raising funds for a crypto-related service or product. Initial Bounty Offerings, or IBOs, are quite different from ICOs.
Initial Bounty Offering is a limited-time process through which a new crypto project is distributed publicly to crowdsource specific human skills necessary for the project's completion. IBOs are also a structured method of expanding the reach of the project.
How do IBOs work?
IBOs offer access to ongoing crypto projects where individuals can complete different important tasks for the successful completion of the project. Bounties are offered in exchange for services and tasks ranging from marketing, product development, research, and so on. Bounties are offered mostly in the form of free or discounted tokens.
However, here individuals volunteering for the tasks must be patient and have the necessary mental fortitude to work in collaboration with other team players for the project completion. However, it must be remembered that only after launching the project on an exchange is it possible to convert them to fiat. One can also choose to keep the tokens till the value increases and sell them off for a nice chunk of profit.
In an age of intense competition between hundreds of crypto projects, IBOs make a lot of sense. Not only do IBOs draw from a vast pool of human skills and talents, but they also provide opportunities for many skilled individuals who can highlight their talents and make some real money in the process.
Why are IBOs better than ICOs?
The market cap for ICOs is relatively small compared to the broader crypto market. The primary thing about ICOs is that they undermine the average buyer. Many large buyers can rush to an ICO and purchase huge chunks of any given token, leaving almost nothing for the average user.
However, IBOs do something quite the opposite. Firstly, they ensure a fair distribution of the tokens since it involves people who help the project reach completion and a successful launch. These individuals have earned the tokens and not just bought them straight up. Therefore, it breaks the notion that crypto is only for those who can amass the wealth to invest in it.
Cryptocurrencies should be for everyone. It should empower everyone, not just a few. That was the idea when it was born. Around 2 billion people on earth have no access to financial institutions, and many of them do not have access to the internet as well. Connecting with the world of cryptocurrencies is their best shot at getting somewhere in life. Through IBOs, one can contribute and make profits from cryptocurrencies without investing capital. They can do so with pure skill and talent.
The first mention of an IBO can be traced back to 2017 with the launch of a company called U.CASH. This company is credited with the launch of the first-ever Initial Bounty Offering.
The whitepaper of the company describes it as “U.CASH is a blockchain-based financial platform and digital asset converter network with a built-in cryptocurrency for payments of fees, execution of smart contracts and additional functionality. Our retail converters are our branches and ATMs.”
The IBO timeline that U.CASH initially offered was like that of an ICO. However, the company allocated most of the network access tokens to all those who volunteered to participate in the company’s IBO. Tasks assigned for ‘bounty hunters’ were as simple as validating and registering accounts on the network, while more advanced stuff was there too.
Conclusion
Blockchain is one of those revolutionary technologies that can lead humankind to a better future. Initial Bounty Offerings coupled with the innovation of Blockchain can bring about such monumental changes much faster.
IBOs are also potent drivers of inclusion in finance since it offers people a chance to earn tokens in exchange for their skills instead of just purchasing them. In many ways, it is a much more just system that takes into consideration the average users who may not possess enough wealth to buy their way into crypto. Moreover, IBOs are great for the mass adoption of crypto and blockchain.
