EZ Wallet 101: Airdrops and Bounties: What are the key differences?
Community is a huge part of the crypto movement. Web3 empowers users to have a more active role in the system, and earn from their participation. But if the entirety of Web3 was miners and validators, it wouldn’t have the transformative potential it has today.
Outside of the technical aspects of crypto, many crypto communities offer other opportunities to earn and be part of the community. Crypto projects have a multitude of needs including marketing, content creation and online moderation, and members actively seeking to grow within a community can join the community and seek benefits.
Today we’ll be looking at two different ways that community members and crypto holders can benefit in the form of Airdrops and Crypto Bounties.
Like the literal term, a crypto airdrop is a marketing strategy by which free coins or tokens are sent to recipients for free, or in exchange for a very small task. The goal of a crypto airdrop is to help with the promotion of your community and diversify the circulation of new crypto. For example, when OmiseGo released their OMG token in 2017, anyone who held Ethereum received OMG tokens for free directly into their wallet.
Bored Ape Yacht Club, the famous NFT collection, did something similar. Upon the release of their official token, ApeCoin, 150 million tokens were distributed to holders of BAYC NFT. This meant NFT holders not only held the value of their NFT but were literally airdropped up to 10,950 APE coins, worth thousands of dollars upon issuing, just for having a Bored Ape NFT. Although some airdrops are completely free, others require a small task to receive, usually something that promotes engagement like joining the communities official Twitter or another social media platform.
📌 Crypto Bounties
In the same way a bounty hunter has to track down his target, Crypto bounties require more work than an airdrop. These are tasks and jobs that community members have to complete in order to receive a token reward. The tasks performed depend on each community. For example, a common bounty is to offer “bug bounties,” offering rewards for users who find vulnerabilities in the coding of the project. These can be highly technical and require expertise, but the rewards can far outweigh a standard airdrop. For example, one programmer was able to find a security flaw in Coinbase and received a $30,000 reward bounty for their effort.
Technical bounties are not the only type of bounty community members can earn. Many projects need extensive help with marketing, brand recognition, exposure, and networking. Crypto bounties allow the community to reward the members that expand the brand name through things like; networking, social media campaigns, content contests, etc.
Airdrops and Bounties are two great ways to begin interacting within your favorite crypto community, with each benefiting a key area of Crypto. First, airdrops allow crypto to spread to new users, diversifying its token base, and offering random rewards for holders. Airdrops are also a smart marketing technique as they require little effort, but promote your work effectively. Airdrop recipients often do not need to do anything more than joining a social media platform, hold a certain token or NFT, and can receive their airdropped prize. Bounties make sure the community is engaged and has enough moderation/content to keep the community healthy and attractive to new users. Whereas older systems like YouTube or Tik Tok own your content, use it to their advantage, and then give you a very small % of ad revenue, Bounties offer Crypto communities a direct way to create and benefit the community and earn for doing so.
📝 About EZ Wallet:
EZ Wallet is on the journey to make crypto more accessible and convenient for everyone, from the crypto newbie to the seasoned crypto vet. The EZ Wallet team is a diverse and dynamic team aiming to create a non-custodial wallet that makes everyone’s journey into the crypto world easier, with a more friendly interface that simplifies the Crypto process while simultaneously pushing the boundaries of what advanced features a digital wallet can provide.
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