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Explained- Initial Bounty Offering for the Unbanked

Jan 06, 2018

Explained- Initial Bounty Offering for the Unbanked
Initial Bounty Offering- Explained

Initial Bounty Offerings, or IBOs, are essentially a framework based on incentives. IBOs are a structured mechanisms that crowdsource human resources, business development, marketing, and user acquisition. The mechanism works to offer network tokens in lieu for their contributions to the ecosystem. This permits a blockchain organization to enlarge its base as well as crowdsource from a big pool of individuals worldwide to complete tasks or projects.

An IBO is able to offer bounties for services, user inputs, products and any other work the platform needs to develop. They can be premeditated using real-world raw costs and inputs or by standards set out by network founders.

The different kinds of bounties

There are multiple bounties you can contribute in, which will depend on the participants’ skill sets and resources. The different types of bounties are-

Bounty Hunters: People who enthusiastically perform bounties and claim token rewards during the Initial Bounty Offering period.

Benefactors: People who opt to support a project’s mission buying a particular amount of bounties and receiving tokens in return.

Builders: Individuals who contribute in the bounty offering by developing products and services the platform necessitates to live long and prosper.

Users: Users of the network who add up during the IBO period and in return get a modest amount of initial tokens to utilize for payment of services.

Promoters: Associates, companies, and people who assert promotion-based bounties that advertise and market the U.CASH platform.

Partners: External networks and platforms, which include exchanges, wallets, payment processors and more, are rewarded with tokens for assimilating into the network.

What can you do with bounties?

Once you have paid, keepers of bounty tokens can decide on their own what they desire to do with these tokens. They can either exchange them in the open market for cash/digital currency, or utilize them to pay for goods and services inside the network or store them for future use.

Those who want to contribute but aren’t really interested in finishing bounties themselves, though, can opt to become “benefactors”. A benefactor disburses the value of a bounty to the organization, which permits the organization itself to employ others to complete it.

IBOs over ICOs

Participation in distribution networks growth. Since the ICO market cap is fairly small compared to the entire cryptocurrency market, large buyers can easily manipulate an ICO and provide unfair benefits to a small group of people at the expense of the rest of the community. If these buyers are quick to the market, they can buy up the vast majority of tokens in minutes, cutting out the average user as well as adversely affecting the future of that token.

ICOs are also only available to those who have the capital to invest and cryptocurrencies to process investments. By its very nature, this excludes a large portion of the world’s population. An estimated two billion adults are considered “unbanked” – that is, they lack access to financial institutions that most of us take for granted. Many of them, however, do have Internet access, which makes them ideally suited for getting involved in the world of cryptocurrency. By distributing tokens through an IBO model, it allows those without the financial means to get involved and contribute in other ways.

The Traditional Banking System

The traditional banking systems are expensive, non-transparent and non-inclusive. Traditional banking services are slow in their ability to innovate and adapt. That’s why they have had issues quickly growing, technologically savvy populations in the developing world. At the same time, small entities usually provide financial services with high regulatory and maintenance costs, closed-source APIs, expensive hardware and software modules and intense security. This always ends up with high transaction costs, complex procedures, and delays.

Over 2 billion adults don’t have access to formal financial services (access to loans, sending and receiving funds, secure asset holdings, etc.). They are mostly based in countries with developing economies such as Africa, the Middle East, East Asia and the Pacific region. Underdeveloped banking infrastructure, high costs of financial services, lack of proper government identification - these are, along with low income, frequent civil conflicts and wars are all contributing factors to the limited banking presence outside major urban centers in those economies.

Financial inclusion through IBOs

A peer-to-peer financial services network can be helpful and assist you. IBOs are used as a mechanism to disseminate network tokens and incentivize participation. Network tokens can be called as common access keys, which provide users admittance to services on the network as well as develop sophisticated functionalities.

By giving tokens in an IBO format, instead of an ICO, anyone who has access to the Internet can become a component of the ecosystem in exchange for their proficiency.

Combining the IBO format with a blockchain-based financial platform and digital asset converter network can advance the things further. Platforms for instance U.CASH, can exchange fiat money into more protected holdings of digital assets from diverse points of the world. They can in addition offer access to a wide range of digital currency services such as buy, sell, trade, and store digital/virtual currencies such as Bitcoin, Ethereum and others, financial services for instance, loans, bill payments, remittance and foreign exchange, legal and human services such as notarization, escrow and identity.

Working through IBOs

Converters facilitate users to transfer and not transform money onto the platform in local currency. There can be retail converters such as monetary service businesses, commercial stores, and retail shops, individual mobile exchange who can meet with users to do in-person conversions or online exchange who provide remote services such as online deposits and transfers. Converters set their service offering details such as fees, operating hours; user verification levels and can take advantage of built-in accounting and integrated compliance systems.

Through the U.CASH platform, people from diverse areas of the world will be able to admit into financial services, and through the IBO model, they won’t need to acquire cryptocurrencies to do that.