Skip to content
BeginnerLook up a term

What are incentivised testnets?

Author
CRYPTO PORT Editorial
Published
Updated
Reading time
4 min

In short

An incentivised testnet rewards people who help test a network before launch. The testnet's own tokens have no value; any reward comes later as a share of the mainnet token — if the team decides to do it. Neither the distribution nor its criteria are guaranteed, and the time spent is not recoverable.

Key points

  • Rewards for helping test a network before launch
  • Testnet tokens themselves have no monetary value
  • Neither the reward nor its criteria are guaranteed
  • Time and hardware costs are not recoverable

Definition

A programme that rewards participants for running nodes or exercising features on a pre-launch test network, typically through a later mainnet token distribution, in order to attract load testing and bug reports.

The purpose is technical. A pre-launch network needs real load, varied environments and bug reports, and rewards are how participants are recruited. Typical tasks include running a node for a set period, performing specified operations, or filing bug reports.

Testnet tokens come free from a faucet, carry no monetary value and cannot be traded. What participants are really hoping for is a share of the mainnet token at launch, allocated according to testnet contribution.

That hope has nothing behind it. Whether to distribute at all is the project's decision, and announcements usually say only that it is under consideration. Criteria are set later, and participants have been excluded for insufficient uptime or on Sybil grounds. Running a node costs server time and electricity up front. Before starting, check that you could accept the cost with zero reward.

Watch out for

  • · Offers to buy your testnet tokens are scams — the tokens have no value
  • · Do not reuse your main wallet for testnet activity
  • · Running a node costs money continuously, reward or not

Related coins

Read next

Crypto quizzes

Answer a few questions and get your result instantly.

Start