They partnered with this exchange called Tokpie where hunters can trade their weekly/monthly stakes for eth while the bounty is ongoing. That's one option they can do to avoid KYC and still be rewarded (in eth). Those who bought the stakes can then convert it to TGN upon distribution. Anyway, their admin (terragreen) said those buyers aren't required to undergo KYC.
Are you sure how that process is working exactly? We had a few participants in the German local board and that option was mentioned by one of them but only that these conversions to ETH mean that someone has to buy these shitcoin bounty stakes (LOL, honestly, which idiot will buy that??

) and surprise surprise, the option doesn't really work because there are no buyers / the orders are ridiculously low if there are any...
I haven't use that exchange yet (Tokpie), I only read that feature on their site. As you noted, hunters will still have an issue if there are no buyers or if buy orders are very low. Has any of the participants created a flag yet?