Every single crypto/blockchain project needs a whitepaper. A whitepaper is an essential part of a crypto project’s campaign. Every single project in the market is out there to solve a problem. The whitepaper explains the problem as well as the solution that the project is coming with. A professional whitepaper is much more than merely a technical document. Therefore, it is extremely important for a crypto/blockchain startup to prepare a well-detailed whitepaper. But writing a crypto whitepaper requires expertise and sound technical knowledge.
What Is A Crypto Whitepaper?
A crypto whitepaper is a detailed technical document that provides complete information about a project and its use cases. It aims to justify the need for the project while highlighting a problem.
Businesses across industries, especially those focusing on technological innovations, use whitepapers in their campaign. For a crypto or blockchain project, having a whitepaper is a must. Here are the top points that a crypto whitepaper must include:
- Introduction
- Disclaimer
- Table of Contents
- Description Of The Problem
- Details Of The Product and How It Solves The Problem
- Tokenomics (Supply, Distribution, and Use Cases)
- Details On Utilization Of Available Funds
- Team
- Roadmap
How To Write A Crypto Whitepaper?
Start With A Disclaimer: The crypto world is full of misinformation, misconceptions, and frauds. Different regulatory laws add to the confusion. Therefore, your crypto whitepaper must start with a legal notice or disclaimer clearly mentioning any exemptions. It should also include statements that inform future investors that the project doesn’t guarantee any profit.
Introduce The Project Like A CEO: The body of your crypto whitepaper should start with a compelling introduction. You should address the readers like the CEO of the company. This implies that the tone of the introduction should be conversational. In this section, you need to highlight the problem/s and explain how your project can solve them. This is essential to make potential investors realize the use cases of the project. Use charts, images, and infographics to make the introduction more engaging.
Explain How The Product Works: Now that you have attracted the attention of potential investors, it is time to explain how your product works and the mechanism it uses to solve the problem. Investors and researchers love data. Make sure you add enough numbers backed by research to make the content more interesting. Also, talk about the progress with respect to the project so that investors can get a perspective. This section must include all the technical details, including the prototype, first users, and beta programs, if any. A lot of projects start building a community on social media way ahead of the product launch. If you are one of those projects, make sure to mention the details here. Investors tend to invest in projects with a strong community.
Tokenomics: In the crypto economy, tokens are at the heart of any project. Thus, your crypto whitepaper is incomplete without the tokenomics section. This section should include important information like total token supply, initial supply, number of tokens in circulation, token distribution model, token use cases, etc. Make sure you include insightful infographics to make the token economy more understandable.
Show Off Your Team: A crypto whitepaper can help you raise enough funds required for a kickstart. But to secure funding, you need to decode what investors look for. One of the things that investors give special attention to is the team structure. Hence, you should also include complete information about the entire team powering your project. Always mention their previous experience, areas of expertise, and achievements. This adds to the value of your project, and the chances of raising funds, to increase substantially.
Roadmap: How you start and where you what to go are the two most critical factors that reflect the vision behind your project. Before you wrap up writing your crypto whitepaper, make sure you have added the roadmap section. The roadmap section should explain your future plans, such as planned updates, token launch, and burning mechanism, to ensure complete transparency. Transparency is a trait integral to the blockchain and crypto industry. With a clear roadmap in the whitepaper, it is easier for projects to win the trust of investors.
Final Word
But, it is important to note that crypto is an evolving industry, and thus, it is impossible to encapsulate all the components of a whitepaper and present it in a standard format. Besides the aforementioned components, you can add more components to your crypto whitepaper, depending on the project’s requirements. Also, the overall tone of the whitepaper must be informational, and the language should be formal.