How to earn via 'crypto

 Crypto bounties are prizes in cryptocurrency tokens that a Web3 project awards users after completing particular tasks successfully.

Crypto bounties are prizes in cryptocurrency token

Crypto has opened up several avenues of money making for interested people but people lack clarity on how to use these tools to their benefit. Crypto bounties are one such medium. 

What are crypto bounties? 

In simple words, crypto bounties are prizes in cryptocurrency tokens that a Web3 project awards users after completing particular tasks successfully. These tasks may be different in each project and the reward amount may also be different. 

What do participants need to do to earn rewards? 

Most often, these programs demand participants to identify bugs in a blockhain network. One such crypto bounty program is run by Ethereum, the most widely used blockhain network. Participants in the Ethereum crypto bounty program are tasked to find bugs and vulnerability in the network, which has the most Web3 projects running on its blockchain. Successful participants are awarded Ether, which the native crypto token of the Ethereum blockchain. As per data from CoinMarketCap as of 11:00 am IST, Ether was up 1 per cent and was trading at $2,880 which amounts upto Rs 2,20,760. 

The misuse of crypto bounties 

In the year 2017-18, certain Web3 projects started using crypto bounty programs as a marketing scheme to gain popularity for their project. Many projects started launching crypto bounty programs simultaneously with their project launches or ICOs (Initial Coin Offerings¹). This led to a slew of a several bounty programs with tokenised rewards which did not have any fundamental value. The time and efforts of the bounty hunters participating in these programs started going down the drain due to lack of any value in the prize which was awarded post completion of the tasks successfully. 

Where can you find legitimate projects 

Despite the widespread misuse of crypto bounty programs by some projects in the past, they are still relevant in current times. Interested bounty hunters can find legitimate crypto bounty projects on the official website of Coinbase or Ethereum. 

Tax on crypto bounties in India 

Since the tax laws specifically applicable on cryptocurrencies in India have been recently introduced, there is no exact provision for taxes on gains via crypto bounties as of now. But, from what we can understand from the law which has been introduced, all crypto gains would be subject to 30 per cent tax and 1 per cent TDS. This should be applicable on gains from crypto bounties as well.