{"id":10514,"date":"2023-02-26T20:38:37","date_gmt":"2023-02-26T20:38:37","guid":{"rendered":"https:\/\/www.bitnovo.com\/blog\/?p=10514"},"modified":"2022-05-17T08:41:19","modified_gmt":"2022-05-17T08:41:19","slug":"what-is-the-initial-reward-offer-ibo","status":"publish","type":"post","link":"https:\/\/www.bitnovo.com\/blog\/en\/what-is-the-initial-reward-offer-ibo","title":{"rendered":"What is the initial reward offer (IBO)?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Alternar tabla de contenidos\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-the-initial-reward-offer-ibo\/#what_is_the_initial_reward_offer\" >What is the initial reward offer?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-the-initial-reward-offer-ibo\/#incentive_systems\" >Incentive systems<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-the-initial-reward-offer-ibo\/#ibo_incentives\" >IBO Incentives<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-the-initial-reward-offer-ibo\/#satoshi_y_sun_tzu\" >Satoshi y Sun Tzu<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 3<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span><p><em>\u201cTo defeat the enemy men must be stimulated to combat; for there to be attraction in defeating the enemy there must be rewards and prizes. Prisoners of war must be treated with kindness in order to control the enemy.\u201d\u00a0<strong>\u2013 Sun Tzu, The Art of War (5th Century B.C.)<\/strong><\/em><\/p>\n<p>&nbsp;<\/p>\n<p>As has been known for millennia,\u00a0<strong>humans are driven by incentives<\/strong>. In the past, a deep understanding of these incentives was used by military strategists. Today we use them to design\u00a0<strong>decentralized protocols and business models.<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>In 2017 a way of\u00a0<strong>launching new cryptocurrencies<\/strong>\u00a0to the market exploded in popularity, the famous\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-an-ico-initial-coin-offering\/\"><strong>ICOs (initial cryptocurrency offerings)<\/strong><\/a>. ICOs were harshly criticized for functioning, for the most part, as\u00a0<strong><a href=\"https:\/\/www.bitnovo.com\/blog\/en\/whats-a-scheme-ponzi-the-scam-that-attacked-the-cryptocurrency\/\">Ponzi schemes (scams)<\/a>.<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>At that time the term\u00a0<strong>IBO<\/strong>\u00a0(<strong>Initial Bounty Offering<\/strong>) was also coined. In this article we will discuss this incentive-based approach to launching a\u00a0<strong>new\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-a-token\/\">token<\/a><\/strong>.<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div id=\"image_671849561\" class=\"img has-hover x md-x lg-x y md-y lg-y\">\n<div class=\"img-inner dark\"><img fetchpriority=\"high\" decoding=\"async\" class=\"attachment-large size-large lazyloaded\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/08\/Que-es-una-oferta-inicial-de-recompensa-IBO1.jpg\" sizes=\"(max-width: 768px) 100vw, 768px\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/08\/Que-es-una-oferta-inicial-de-recompensa-IBO1.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/08\/Que-es-una-oferta-inicial-de-recompensa-IBO1-300x205.jpg 300w\" alt=\"Qu\u00e9 es una oferta inicial de recompensa (IBO)\" width=\"768\" height=\"526\" data-srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/08\/Que-es-una-oferta-inicial-de-recompensa-IBO1.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/08\/Que-es-una-oferta-inicial-de-recompensa-IBO1-300x205.jpg 300w\" data-src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/08\/Que-es-una-oferta-inicial-de-recompensa-IBO1.jpg\" data-sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/div>\n<\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"what_is_the_initial_reward_offer\"><\/span><strong>What is the initial reward offer?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p><strong>The initial reward offering or IBO is a way of launching a token<\/strong>\u00a0to the market similar to ICOs.<strong>\u00a0The creating company or organization<\/strong>, instead of selling the tokens,<strong>\u00a0offers<\/strong>\u00a0them in exchange for certain\u00a0<strong>services<\/strong>.<\/p>\n<p>In this way the resulting<strong>\u00a0incentives<\/strong>\u00a0are more powerful. The services to be performed will be related to the company itself, as we will see below.<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h3><span class=\"ez-toc-section\" id=\"incentive_systems\"><\/span><strong>Incentive systems<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>Incentives are a key concept in understanding how humans function and building successful businesses and protocols.<\/p>\n<p>&nbsp;<\/p>\n<p>A paradigmatic example of the effect of incentives was the\u00a0<strong>introduction of seat belt regulations<\/strong>. Paradoxically, after it, the\u00a0<strong>number of accidents increased<\/strong>\u00a0(although the number of fatalities decreased). By having a safety feature, theA paradigmatic example of the effect of incentives was the introduction of seat belt regulations. Paradoxically, after it, the number of accidents increased (although the number of fatalities decreased). By having a safety feature, the incentive to be more careful was reduced.\u00a0 was reduced.<\/p>\n<p>&nbsp;<\/p>\n<p>Another example of an incentive manual is\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-bitcoin\/\">Bitcoin<\/a>\u00a0itself, where<strong>\u00a0miners<\/strong>\u00a0are incentivized to\u00a0<strong>seek the best for Bitcoin<\/strong>\u00a0instead of attacking it. As a consequence\u00a0<strong>Bitcoin holders<\/strong>\u00a0also have incentives to contribute to the improvement of the cryptocurrency.<\/p>\n<p>&nbsp;<\/p>\n<p>Similarly, \u201c<strong>bug bounties<\/strong>\u201d seek to\u00a0<strong>discourage computer attacks<\/strong>. They are carried out by large technology companies and, now, also in cryptocurrencies. They\u00a0<strong>reward monetarily<\/strong>\u00a0anyone who discovers\u00a0<strong>errors in the code<\/strong>\u00a0or bugs.<\/p>\n<p>&nbsp;<\/p>\n<p>Incentives are also a fundamental part of a successful\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-a-dao\/\">DAO<\/a>\u00a0or\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-defi-o-decentralized-finance\/\">DeFi<\/a>\u00a0protocol. In liquidity mining, for example,\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-yield-farming-of-cryptocurrencies\/\">liquidity<\/a>\u00a0providers are rewarded with the\u00a0<strong>protocol token<\/strong>\u00a0that brings them benefits (such as additional rewards for blocking coins).<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"ibo_incentives\"><\/span><strong>IBO Incentives<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>Similarly, the IBO approach seeks to<strong>\u00a0align user incentives with the project on which the token is based<\/strong>. Instead of spending money to buy the token, users will be able to\u00a0<strong>obtain it at no monetary cost (or at a discount) in exchange for valuable services.<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>These services can be<strong>\u00a0translation, marketing, business development or human resources<\/strong>. But these types of resources cannot be verified by a blockchain, and will be remunerated by the\u00a0<strong>centralized organization<\/strong>\u00a0behind the project.<\/p>\n<p>&nbsp;<\/p>\n<p>In IBOs\u00a0<strong>the token holders have been more actively involved<\/strong>\u00a0than in ICOs. Therefore, they would have developed more affinity. The fact that the coin holders are\u00a0<strong>emotionally invested<\/strong>\u00a0could increase the probability of success of the project.<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div id=\"image_1164687849\" class=\"img has-hover x md-x lg-x y md-y lg-y\">\n<div class=\"img-inner dark\"><img decoding=\"async\" class=\"attachment-large size-large lazyloaded\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/08\/Que-es-una-oferta-inicial-de-recompensa-IBO2.jpg\" sizes=\"(max-width: 768px) 100vw, 768px\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/08\/Que-es-una-oferta-inicial-de-recompensa-IBO2.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/08\/Que-es-una-oferta-inicial-de-recompensa-IBO2-300x205.jpg 300w\" alt=\"Qu\u00e9 es una oferta inicial de recompensa (IBO)\" width=\"768\" height=\"526\" data-srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/08\/Que-es-una-oferta-inicial-de-recompensa-IBO2.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/08\/Que-es-una-oferta-inicial-de-recompensa-IBO2-300x205.jpg 300w\" data-src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/08\/Que-es-una-oferta-inicial-de-recompensa-IBO2.jpg\" data-sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/div>\n<\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h3><span class=\"ez-toc-section\" id=\"satoshi_y_sun_tzu\"><\/span><strong>Satoshi y Sun Tzu<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>The truth is that\u00a0<strong>the term IBO is not nearly as widely used and known as ICO<\/strong>. In general, any incentive system such as\u00a0<strong>DeFi protocols may well fall into this category<\/strong>\u00a0(with rewards distributed in a decentralized manner with the\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-a-cryptocurrency-governance-system\/\">governance token<\/a>).<\/p>\n<p>&nbsp;<\/p>\n<p>The term may be completely obsolete, but the\u00a0<strong>general idea<\/strong>\u00a0of aligning incentives is\u00a0<strong>more alive than<\/strong>\u00a0ever. This idea can be found in\u00a0<strong>old treatises on strategy<\/strong>\u00a0such as that of\u00a0<strong>Sun Tzu<\/strong>, whose book, \u201cThe Art of War\u201d has become very popular.<\/p>\n<p>&nbsp;<\/p>\n<p>Sun Tzu created a treatise applicable to<strong>\u00a0modern business<\/strong>, although his intention was to<strong>\u00a0apply it to warfare<\/strong>.\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/who-is-satoshi-nakamoto\/\">Satoshi Nakamoto<\/a>\u00a0also created a<strong>\u00a0treatise on incentives<\/strong>\u00a0with his Internet postings, although his intention was to create\u00a0<strong>digital money<\/strong>. For sure Satoshi will be seen as a modern Sun Tzu!<\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 3<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span>\u201cTo defeat the enemy men must be stimulated to combat; for there to be attraction in defeating the enemy there must be rewards and prizes. Prisoners of war must be treated with kindness in order to control the enemy.\u201d\u00a0\u2013 Sun Tzu, The Art of War (5th Century B.C.) &nbsp; As has been known for millennia,\u00a0humans [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":7612,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[185],"tags":[],"class_list":["post-10514","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-en"],"_links":{"self":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/10514","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/comments?post=10514"}],"version-history":[{"count":0,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/10514\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media\/7612"}],"wp:attachment":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media?parent=10514"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/categories?post=10514"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/tags?post=10514"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}