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What is a bug bounty programme?

Author
CRYPTO PORT Editorial
Published
Updated
Reading time
4 min

In short

A bug bounty pays people who find vulnerabilities, so that reporting beats exploiting. A programme with published rewards, a clear scope and a record of actual payouts is evidence that a project is being tested continuously. For users, it sits alongside audits as a signal worth checking.

Key points

  • Pays researchers so that reporting beats exploiting
  • Look for a published scope and reward schedule
  • A record of real payouts is what matters
  • Audits are a snapshot; bounties are continuous

Definition

A programme under which outside researchers are paid for reporting vulnerabilities to the developers instead of exploiting them, with scope, severity tiers and a reporting process published in advance.

Anyone who finds a vulnerability faces a choice between exploiting it and reporting it. A bounty programme tilts that choice by making the reward for reporting explicit, and protocols holding more value generally post larger rewards.

A published programme states which contracts and code are in scope, how severities map to payouts, where to report, and what researchers must not do — typically forbidding tests against the live network and requiring reproduction in a test environment so that users are not caught up in it.

What matters when you evaluate one is not that it exists but that it works. Is there a public record of reports that were paid? How quickly did fixes follow disclosure? Is the maximum reward proportionate to the value at stake? A programme page with no payout history carries much less weight.

Watch out for

  • · Check payout history and fix turnaround, not just that a programme exists
  • · Compare the maximum reward with the value the protocol holds
  • · If you research vulnerabilities yourself, never test against the live network — follow the published process

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