Owldotask and Crypto: We DONT Use Blockchain for Rewards

5 min read

In this article, we’ll tell you a bit about the crypto world and our relationship with cryptocurrencies.

Why NOT Crypto as a Reward?

We used to offer cryptocurrency as one of the methods to reward users for completing tasks on Owldotask. From a development standpoint, it was an efficient solution that offered maintainable code and seamless scalability.

This system provided:

  • Transparency: Every payment was fully traceable. Users could click "Claim" and watch the process move node-to-node in seconds, receiving cryptocurrency payments directly in their connected wallets.
  • Global Access: Rewards reached users regardlessof their country of residence or local banking restrictions—blockchain is decentralized and operates independently of any bank or government.
  • Efficiency: It was a fast and cost-effective way to handle payments, allowing users to claim and receive their rewards in a matter of seconds.

A wallet is a digital tool that allows owners to securely store, manage, and interact with their cryptocurrency assets and blockchain addresses.

We still work with cryto to maintain the site

However, we continue to work with various cryptocurrencies behind the scenes to ensure this project remains well-funded. We maintain a diverse treasury, and crypto is one of the assets that—when managed prudently with proper risk mitigation—helps generate sustainable yields for our platform.

How We Obtain the Funds to Pay Users

The Owldotask fund management team maintains a cryptocurrency portfolio used to generate treasury yield and sustain our user rewards systems. We keep a generous provision specifically allocated for user rewards across several of our wallets.

We acquire these funds through various methods, primarily by purchasing them on well-known exchanges

We Purchase Cryptocurrencies Mostly on Exchanges

In case you are interested, we conduct our operations across several exchanges.

Security and Trust in Exchanges

Before you begin, it is important to note that reputable exchanges implement rigorous security protocols to ensure the safety of your assets. These platforms require strict identity verification to prevent fraud and money laundering. Additionally, they offer robust account protection features, such as Two-Factor Authentication (2FA), which adds an essential layer of security beyond just a password to keep your funds and personal information safe.

  • Kraken is widely recognized for its robust security measures and its long-standing reputation as a reliable platform for professional traders.
  • Binance is the world’s largest cryptocurrency exchange by trading volume, offering an extensive ecosystem of financial services and digital tokens.
  • Coinbase is a highly user-friendly, US-based exchange that is often the preferred entry point for beginners due to its intuitive interface and regulatory compliance.
  • Bybit specializes in high-speed trading and derivatives, providing advanced tools for users looking for a more professional trading experience.
  • OKX is a global platform known for its versatile suite of trading features and its deep liquidity across hundreds of different crypto pairs.

An exchange is a digital marketplace that allows users to buy, sell, and trade various cryptocurrencies for other digital assets or traditional fiat currencies.

Active Management of Funds

Since we maintain a cryptocurrency fund for our users, we actively manage these assets to keep them in "constant motion." This transforms the capital into an active, rather than stagnant, asset, thereby increasing its overall value.

We execute short-term operations—evolved through accumulation strategies—utilizing our proprietary bot to implement a secure and conservative DCA (Dollar Cost Averaging) strategy. This approach guarantees that we consistently maintain the necessary funds to fulfill all user payouts on the platform.

  • DCA Bot: We utilize a proprietary automated bot to execute a Dollar Cost Averaging (DCA) strategy. Instead of making large, risky purchases, our bot spreads out buy orders at regular intervals regardless of the price. This mathematical approach mitigates the impact of volatility and lowers our average cost basis over time. By maintaining this disciplined accumulation, we ensure a constant and healthy flow of liquidity, guaranteeing that we always have the necessary funds to fulfill user payouts even during market downturns.
  • Staking: A significant portion of our treasury is allocated to Staking on Proof-of-Stake (PoS) networks. By "locking" these assets, we participate as validators or delegators to secure the blockchain and verify transactions. In return for this contribution to the network’s stability, we earn consistent staking rewards (similar to yield). These rewards are directly reinvested into the Owldotask ecosystem, providing a sustainable and non-inflationary way to fund the Feathers you earn every day.

General Crypto Security Tips for Our Community

Even though Owldotask no longer processes payouts in cryptocurrency, we know many of our users actively participate in the web3 ecosystem. To ensure your personal crypto experience remains safe, please keep these essential security guidelines in mind:

Never Share Your Seed Phrase

Your seed phrase (or recovery phrase) is the master key to your personal wallets—anyone who gains access to it has total control over your funds.

  • No administrator or legitimate member of the Owldotask team will ever ask for your seed phrase or private keys.
  • Never enter your seed phrase into any website, form, or application other than your official wallet provider.

Beware of Phishing Attacks

Always verify that you are interacting with official platforms and verified URLs. Scammers frequently create lookalike websites or social media profiles to trick users into connecting their wallets or signing malicious contracts.

  • Bookmark your official exchange and platform links.
  • Remember: We will never send you a direct message (DM) asking for personal financial credentials.

Always Perform Test Transactions

When transferring crypto on your own between personal wallets or exchanges, always send a small test amount first. This simple step ensures that your destination address, network selection, and wallet configurations are correct before moving larger sums of money.

Glossary

If you are new to the crypto world and want to get started, you should at least be familiar with these concepts. It isn't strictly necessary to know every detail inside out to earn cryptocurrency on Owldotask, but it will certainly help you understand the full scope of this article:

  • Cryptocurrency: A digital currency where transactions are verified and records maintained by a decentralized system using cryptography
  • Exchanges: Platforms like Kraken or Binance where you can buy and sell cryptocurrencies
  • Wallet: A digital tool that allows you to store and manage your crypto assets. You will need one connected to your profile to receive rewards
  • Blockchain: A distributed, traceable ledger that ensures every transaction is transparent and secure
  • POL: Our primary payment currency, chosen for its extremely low transaction (gas) fees
  • Smart Contract: Self-executing contracts with the terms of the agreement directly written into code

Is it Complicated?

Since we no longer process crypto payouts, PayPal is our primary and seamless payment method, along with wire transfer.