White-Hat Bounty

Definition ∞ A white-hat bounty rewards ethical hackers for finding and reporting security flaws. This incentive program provides monetary compensation or other recognition to ethical security researchers who identify and responsibly communicate vulnerabilities within a blockchain project’s code or systems. Its purpose is to leverage collective expertise to proactively strengthen digital asset platforms against malicious attacks. Such bounties significantly contribute to the overall security posture of decentralized applications.
Context ∞ White-hat bounties are a standard practice in the cryptocurrency and decentralized finance sectors, frequently appearing in news as projects announce new programs or successful bug disclosures. These initiatives foster a collaborative security environment and are crucial for identifying critical flaws before they can be exploited. The ongoing trend involves increasing bounty sizes to attract top security talent.