Developing this foundational document is the first step to launching a successful crypto-crowdfund
No matter what kind of blockchain project you want to develop, chances are, youâ€™ll need a whitepaper. But what exactly is a whitepaperâ€Šâ€”â€Šand why is this document so important in the blockchain world?
More Than Marketing Fluff
According to Techopedia, a whitepaper is â€œan authoritative guide or report that explains the benefits of a particular technology, product, or policy.â€� Given the new and fast-changing nature of blockchain technology, anyone looking to launch a blockchain project will need to clearly explain how and why it will beÂ used.
Essentially, a whitepaper should answer the key question that any potential contributor will askâ€Šâ€”â€Šwhy is this project needed at all and how is it relevant to myÂ goal?
A whitepaper is more than just a business plan or a piece of marketing collateral. Itâ€™s a foundational document that details the technological solution to a real problem. Your whitepaper acts as a blueprint for the technology that needs to be developed, and should clearly outline how and why a token will be used in the blockchain space. Overall, a whitepaper is a crucial document when it comes to convincing potential supports to contribute to yourÂ project.
Understanding Token Economics
You donâ€™t need a finished project to write a whitepaperâ€Šâ€”â€Šand in fact, given the foundational nature of this document, you should create your whitepaper well before your project is ready toÂ launch.
To understand why, it helps to understand token economics in the blockchain universe. Token crowdsales exist to support projects with a tokenized economic model. Buyers of crowdsale tokensâ€Šâ€”â€Šwhether they intend to contribute financially to a project or actively participate in itâ€Šâ€”â€Šneed to understand the economic principles and technical details involved in a project to make an informed decision.
By sharing an early-stage whitepaper, you offer early adopters insight into your solution and can start to build a community. Even better, you enable an early conversation and critique of your project before launching into development.
Inviting the OutsideÂ In
Considering the costs of launching a token crowdsale, itâ€™s worth getting feedback from supporters as early as possible. While itâ€™s tempting to wait until you have finalized everything, offering an early outline of the problem you plan to solve, the technical details of your solution, and a roadmap for future plans will encourage people to support yourÂ project.
While there are no hard and fast rules about what information to include in a whitepaper, itâ€™s a good idea to at least consider the following:
- Identify the problem you areÂ solving
- Outline the proposed technical solution
- Include details about the project, including what is already developed
- Describe the tokenâ€™s characteristics, governance andÂ use
- Outline the qualifications of team members andÂ advisors
- Suggest a roadmap for the future, including critical dates for your tokenÂ sale
Creating a PolishedÂ Product
Since your whitepaper is a vital component, you should put in the effort to create a compelling document. As a professional document, your whitepaper shouldÂ be:
- Accurate: Donâ€™t inflate your statistics or make bogus statements about your company or the market. Any potential contributors worth their salt will do due diligence, and false claims (including honest inaccuracies) could trigger doubts about the authenticity of your product orÂ company.
- Professional: Your whitepaper should be clear and free from grammar mistakes. Avoid using jargon or complex language unless absolutely necessaryâ€Šâ€”â€Šthe aim is to tell your story in a way that convinces potential supporters from all walks of life to contribute to yourÂ project.
- Attractive: Humans are visual creatures. Format your whitepaper so it is easy to read, and where possible, break up walls of text with graphics, charts, or other visualÂ cues.
Developing a solid whitepaper is just the first step to developing and launching your token crowdsale. Visit rocket.etherparty.com to learn how you can create, launch, and track a token crowdsale without a development team, or contact firstname.lastname@example.org for moreÂ details.
To Launch a Token Crowdsale, You Need a Whitepaper was originally published in Etherparty on Medium, where people are continuing the conversation by highlighting and responding to this story.