diff --git a/contracts/bounty/src/lib.rs b/contracts/bounty/src/lib.rs
index adacfa7..9264256 100644
--- a/contracts/bounty/src/lib.rs
+++ b/contracts/bounty/src/lib.rs
@@ -1,37 +1,113 @@
 #![no_std]
-use soroban_sdk::{contract, contractimpl, Address, Env, token, symbol_short, Symbol, Map};
+use soroban_sdk::{
+    contract, contractimpl, contracttype, symbol_short, token, Address, Env, Map, Symbol,
+};
 
 #[contract]
 pub struct BountyContract;
 
+#[contracttype]
+#[derive(Clone)]
+pub struct BountyEscrow {
+    pub token: Address,
+    pub amount: i128,
+}
+
 #[contractimpl]
 impl BountyContract {
     pub fn tip(env: Env, token: Address, from: Address, to: Address, amount: i128) {
+        require_positive_amount(amount);
         from.require_auth();
         let client = token::Client::new(&env, &token);
         client.transfer(&from, &to, &amount);
     }
 
-    pub fn create_bounty(env: Env, token: Address, maintainer: Address, issue_id: Symbol, amount: i128) {
+    pub fn create_bounty(
+        env: Env,
+        token: Address,
+        maintainer: Address,
+        issue_id: Symbol,
+        amount: i128,
+    ) {
+        require_positive_amount(amount);
         maintainer.require_auth();
-        
+
         let client = token::Client::new(&env, &token);
-        client.transfer(&maintainer, &env.current_contract_address(), &amount);
-        
-        let key = (symbol_short!("bounty"), issue_id.clone());
-        let mut bounty: Map<Address, i128> = env.storage().persistent().get(&key).unwrap_or(Map::new(&env));
-        
+        client.transfer(&maintainer, env.current_contract_address(), &amount);
+
+        let key = bounty_key(issue_id);
+        let mut bounty: Map<Address, BountyEscrow> = env
+            .storage()
+            .persistent()
+            .get(&key)
+            .unwrap_or(Map::new(&env));
+
         if bounty.contains_key(maintainer.clone()) {
             panic!("Bounty already exists for this issue and maintainer");
         }
-        
-        bounty.set(maintainer.clone(), amount);
+
+        bounty.set(maintainer.clone(), BountyEscrow { token, amount });
         env.storage().persistent().set(&key, &bounty);
     }
 
-    pub fn cancel_bounty(env: Env, token: Address, maintainer: Address, amount: i128) {
+    pub fn claim_bounty(env: Env, maintainer: Address, issue_id: Symbol, contributor: Address) {
         maintainer.require_auth();
-        let client = token::Client::new(&env, &token);
-        client.transfer(&env.current_contract_address(), &maintainer, &amount);
+
+        let escrow = take_bounty(&env, maintainer, issue_id);
+        let client = token::Client::new(&env, &escrow.token);
+        client.transfer(&env.current_contract_address(), contributor, &escrow.amount);
+    }
+
+    pub fn get_bounty_amount(env: Env, maintainer: Address, issue_id: Symbol) -> i128 {
+        let key = bounty_key(issue_id);
+        let bounty: Map<Address, BountyEscrow> = env
+            .storage()
+            .persistent()
+            .get(&key)
+            .unwrap_or(Map::new(&env));
+
+        bounty.get(maintainer).map(|b| b.amount).unwrap_or(0)
     }
+
+    pub fn cancel_bounty(env: Env, maintainer: Address, issue_id: Symbol) {
+        maintainer.require_auth();
+
+        let escrow = take_bounty(&env, maintainer.clone(), issue_id);
+        let client = token::Client::new(&env, &escrow.token);
+        client.transfer(&env.current_contract_address(), maintainer, &escrow.amount);
+    }
+}
+
+fn bounty_key(issue_id: Symbol) -> (Symbol, Symbol) {
+    (symbol_short!("bounty"), issue_id)
 }
+
+fn require_positive_amount(amount: i128) {
+    if amount <= 0 {
+        panic!("Amount must be positive");
+    }
+}
+
+fn take_bounty(env: &Env, maintainer: Address, issue_id: Symbol) -> BountyEscrow {
+    let key = bounty_key(issue_id);
+    let mut bounty: Map<Address, BountyEscrow> = env
+        .storage()
+        .persistent()
+        .get(&key)
+        .unwrap_or(Map::new(env));
+    let escrow = bounty
+        .get(maintainer.clone())
+        .unwrap_or_else(|| panic!("Bounty not found"));
+
+    bounty.remove(maintainer);
+    if bounty.is_empty() {
+        env.storage().persistent().remove(&key);
+    } else {
+        env.storage().persistent().set(&key, &bounty);
+    }
+
+    escrow
+}
+
+#[cfg(test)]
+mod test;
diff --git a/contracts/bounty/src/test.rs b/contracts/bounty/src/test.rs
index 0bdcba0..728786b 100644
--- a/contracts/bounty/src/test.rs
+++ b/contracts/bounty/src/test.rs
@@ -1,21 +1,156 @@
-#![cfg(test)]
+use super::{BountyContract, BountyContractClient};
+use soroban_sdk::{symbol_short, testutils::Address as _, token, Address, Env};
 
-use super::*;
-use soroban_sdk::{vec, Env, String};
+struct TestFixture {
+    env: Env,
+    client: BountyContractClient<'static>,
+    token: Address,
+    maintainer: Address,
+    contributor: Address,
+    contract: Address,
+}
 
-#[test]
-fn test() {
+fn setup() -> TestFixture {
     let env = Env::default();
-    let contract_id = env.register(Contract, ());
-    let client = ContractClient::new(&env, &contract_id);
+    env.mock_all_auths();
+
+    let maintainer = Address::generate(&env);
+    let contributor = Address::generate(&env);
+    let token_admin = Address::generate(&env);
+    let token = env.register_stellar_asset_contract_v2(token_admin.clone());
+    let token_address = token.address();
+    let token_admin_client = token::StellarAssetClient::new(&env, &token_address);
+    token_admin_client.mint(&maintainer, &1_000);
+
+    let contract = env.register(BountyContract, ());
+    let client = BountyContractClient::new(&env, &contract);
+
+    TestFixture {
+        env,
+        client,
+        token: token_address,
+        maintainer,
+        contributor,
+        contract,
+    }
+}
+
+#[test]
+fn create_bounty_locks_tokens_in_contract_escrow() {
+    let fixture = setup();
+    let token_client = token::Client::new(&fixture.env, &fixture.token);
+    let issue_id = symbol_short!("ISSUE2");
 
-    let words = client.hello(&String::from_str(&env, "Dev"));
+    fixture
+        .client
+        .create_bounty(&fixture.token, &fixture.maintainer, &issue_id, &250);
+
+    assert_eq!(token_client.balance(&fixture.maintainer), 750);
+    assert_eq!(token_client.balance(&fixture.contract), 250);
     assert_eq!(
-        words,
-        vec![
-            &env,
-            String::from_str(&env, "Hello"),
-            String::from_str(&env, "Dev"),
-        ]
+        fixture
+            .client
+            .get_bounty_amount(&fixture.maintainer, &issue_id),
+        250
     );
 }
+
+#[test]
+fn claim_bounty_releases_locked_tokens_to_contributor() {
+    let fixture = setup();
+    let token_client = token::Client::new(&fixture.env, &fixture.token);
+    let issue_id = symbol_short!("ISSUE2");
+
+    fixture
+        .client
+        .create_bounty(&fixture.token, &fixture.maintainer, &issue_id, &250);
+    fixture
+        .client
+        .claim_bounty(&fixture.maintainer, &issue_id, &fixture.contributor);
+
+    assert_eq!(token_client.balance(&fixture.maintainer), 750);
+    assert_eq!(token_client.balance(&fixture.contributor), 250);
+    assert_eq!(token_client.balance(&fixture.contract), 0);
+    assert_eq!(
+        fixture
+            .client
+            .get_bounty_amount(&fixture.maintainer, &issue_id),
+        0
+    );
+}
+
+#[test]
+fn claim_bounty_uses_the_escrowed_token() {
+    let fixture = setup();
+    let issue_id = symbol_short!("ISSUE2");
+    let other_token_admin = Address::generate(&fixture.env);
+    let other_token = fixture
+        .env
+        .register_stellar_asset_contract_v2(other_token_admin.clone());
+    let other_token_address = other_token.address();
+    let other_admin_client = token::StellarAssetClient::new(&fixture.env, &other_token_address);
+    let other_token_client = token::Client::new(&fixture.env, &other_token_address);
+    let escrowed_token_client = token::Client::new(&fixture.env, &fixture.token);
+
+    other_admin_client.mint(&fixture.contract, &999);
+    fixture
+        .client
+        .create_bounty(&fixture.token, &fixture.maintainer, &issue_id, &250);
+    fixture
+        .client
+        .claim_bounty(&fixture.maintainer, &issue_id, &fixture.contributor);
+
+    assert_eq!(escrowed_token_client.balance(&fixture.contributor), 250);
+    assert_eq!(other_token_client.balance(&fixture.contributor), 0);
+    assert_eq!(other_token_client.balance(&fixture.contract), 999);
+}
+
+#[test]
+fn cancel_bounty_returns_locked_tokens_to_maintainer() {
+    let fixture = setup();
+    let token_client = token::Client::new(&fixture.env, &fixture.token);
+    let issue_id = symbol_short!("ISSUE2");
+
+    fixture
+        .client
+        .create_bounty(&fixture.token, &fixture.maintainer, &issue_id, &250);
+    fixture.client.cancel_bounty(&fixture.maintainer, &issue_id);
+
+    assert_eq!(token_client.balance(&fixture.maintainer), 1_000);
+    assert_eq!(token_client.balance(&fixture.contract), 0);
+    assert_eq!(
+        fixture
+            .client
+            .get_bounty_amount(&fixture.maintainer, &issue_id),
+        0
+    );
+}
+
+#[test]
+#[should_panic(expected = "Bounty not found")]
+fn claim_bounty_rejects_missing_escrow() {
+    let fixture = setup();
+
+    fixture.client.claim_bounty(
+        &fixture.maintainer,
+        &symbol_short!("NONE"),
+        &fixture.contributor,
+    );
+}
+
+#[test]
+#[should_panic(expected = "Bounty not found")]
+fn claim_bounty_cannot_be_paid_twice() {
+    let fixture = setup();
+    let issue_id = symbol_short!("ISSUE2");
+
+    fixture
+        .client
+        .create_bounty(&fixture.token, &fixture.maintainer, &issue_id, &250);
+    fixture
+        .client
+        .claim_bounty(&fixture.maintainer, &issue_id, &fixture.contributor);
+    fixture
+        .client
+        .claim_bounty(&fixture.maintainer, &issue_id, &fixture.contributor);
+}