A bounty contract is a reward system used by projects to incentivize specific tasks within a community. These tasks can include activities like identifying bugs in software, promoting a project on social media, or creating content to raise awareness. Participants who complete these tasks can earn cryptocurrencies or tokens as compensation. This approach helps projects enhance their product and increase visibility without large marketing budgets. Bounty contracts are often structured with clear guidelines, detailing what needs to be done and the rewards offered. They create an engaging way for individuals to contribute while potentially earning financial rewards. Overall, they play a significant role in fostering community involvement and driving project growth.