The Right Way to Decentralize Work:
How Social Mining Tackles the Failures of Bounty Campaigns

First of all, what is Social Mining?

A pluggable 100% increase to a token’s utility.
Social Mining is DAO Maker’s flagship offering. It allows any tokenized project to set token-denominated incentives for community members who offer value to the ecosystem; rewards and incentives are autonomously decided by token holders. ask more.

Bounty Campaigns problem

Bounty campaigns peaked during the 2017 bull run while the enormous amount of money and new people that we’re entering the market successfully covered the critical problems that bounty have. Once those crazy times passed away the bounty problems were unfolded and it became clear that this can not work any longer. We´ve covered the bounty campaign problematic in our article before, check it out.

In this article, we will dive deeper into the solution that social mining can provide for the projects that are seeking a better solution for decentralized work.

Price Stimulus

Bounty campaigns — One of the big problems with bounty campaigns is that they are often requiring way too many tokens and the cost doesn’t meet the value. On top of users that are performing bounties have no incentive to hold their tokens after the distribution, thus they are giving the token negative price stimulus creating a constant sell pressure that is damaging the community members.

Social Mining — It’s important to build on a solid foundation, therefore the Social Mining is exclusively for the community members. They hold all the cards when it comes to evaluating others’ work. It´s important to stake their tokens on the non-custodial wallet to grow their indexes and have the real power to incentivize and motivate users that are benefiting the ecosystem. Besides that, the unique platform algorithm is giving more power and payout for people that are holding their stake for a longer time period. The algorithm contains indexes like accumulation index, hodl amount index, and time hodl index.

Logistical problem

Bounty campaigns — Often it’s a struggle for a project to distribute the bounty rewards as they have to closely work with 3rd parties and things are getting messy and most of the time there is a delay since the distribution needs to be done in multiple batches. This can soak up a lot of the time that can be used in a more productive manner.

Social Mining — Building social mining we wanted to make sure that it’s as decentralized as possible where the whole community organism can work on its own, thus the only thing that clients have to do is to push the “red button” and of the rewards that are calculated in real-time by the algorithm will be distributed to non-custodial wallets.

Community building

Bounty campaigns — In the perfect world bounty should create a perfect community of skilled individuals that would support the project since they have the incentive after they eventually get their tokens. The reality is however different. It’s more profitable for bounty hunters to dump their earn tokens and move on into another project because the system is designed in such a way that the more bounties you participate in the bigger chance you have to receive some money.

Social Mining — To build a healthy community we believe that allocating the tokens and power in key community members is crucial. Therefore alfa and omega for us are long time stakeholders, they have the most power in our decentralized SM system. Simply because they have the biggest incentive to promote people that are contributing the biggest value to the ecosystem to further motivate them since they are indirectly benefiting each time when someone boosts the ecosystem that they are in. On the contrarily, the system is designed in such a way that it’s worth holding your rewards if you want to earn more over time and that’s perfectly reasonable since SM is a long term project for most of the projects and you don’t have to jump from one to another.

System abusing

Bounty campaigns — It’s a common knowledge that bounty campaigns are often a target for various scammers that are trying to game the system with multiple entries, fake followers or just an unprofessional work (like translation in google translate) as much as its being filtered by the team members its almost impossible to catch them all. So in the end result, there will be always someone that sneaked their lazy work or fake followers and earned disproportionate reward for it despite the team spending days in human checking the entries.

Social mining — When the system or algorithm is too basic it’s easier to game it. However, to start social mining you need to hold a minimum amount of tokens, we believe that people can work better when they have their own money within the ecosystem so they have even more incentive to contribute with greater quality. However there might be a case when someone will try to cheat the system, but from our experience attempts like that are killed in the bud. Everyone that is within the ecosystem can vote and they are very strict about the content that came in since it can directly impact their stack, thus every attempt was destroyed by the stakeholders and the abuser did not try it again.


It’s proven and obvious that the bounty system is not working properly and every other system like airdrop or smart-drops that were invented mainly for 2017 crazy did not meet the standards within the reasonable market. Its problems for projects and their communities as well. Lots of our team members did bounties in the past and we were aware of the problems it will have, therefore the social mining system was and is being developed for over a year now adding more features, plugging social media APIs and making it as easy as possible for projects to manage it from the back-end eventually to run it in a full decentralized manner. Thanks to feedback from our Social Mining clients like LTO Network, Elrond Network, AVA Labs, 2key or Harmony we can move the platform towards perfection.

Thank you for reading. If you are interested in the Social Mining platform hit us up.

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Ben from Dao Maker

DAO Maker is a strategy and marketing consultancy that is also an industry researcher, Key Opinion Leader, and technology developer.

The company uses its proprietary Social Mining technology to double their clients’ token utility and massively expand the community. The expert team then designs strategies for business growth, user onboarding, powerful token economics, and global marketing, executing most deliverables at rapid speed in order to accelerate clients’ footprint in the blockchain space and beyond.



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