A throwback to wild west days when bounties were offered for catching/killing criminals or ethnic minorities. These days they are offered for bugs in code, of which there is an abundance in DeFi. Sometimes bounties are also offered after an exploit and funds have been stolen, a peace offering if they are returned.
“Wormhole was exploited for $325 million. I heard they offered the attacker a $10 million bounty if they returned the funds.”« Dictionary Menu