To Launch a Token Crowdsale, You Need a Whitepaper
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, you’ll need a whitepaper. But what exactly is a whitepaper — and why is this document so important in the blockchain world?
More Than Marketing Fluff
According to Techopedia, a whitepaper is “an authoritative guide or report that explains the benefits of a particular technology, product, or policy.” 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 be used.
Essentially, a whitepaper should answer the key question that any potential contributor will ask — why is this project needed at all and how is it relevant to my goal?
A whitepaper is more than just a business plan or a piece of marketing collateral. It’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 your project.
Understanding Token Economics
You don’t need a finished project to write a whitepaper — and in fact, given the foundational nature of this document, you should create your whitepaper well before your project is ready to 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 tokens — whether they intend to contribute financially to a project or actively participate in it — need 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 Outside In
Considering the costs of launching a token crowdsale, it’s worth getting feedback from supporters as early as possible. While it’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 your project.
While there are no hard and fast rules about what information to include in a whitepaper, it’s a good idea to at least consider the following:
- Identify the problem you are solving
- Outline the proposed technical solution
- Include details about the project, including what is already developed
- Describe the token’s characteristics, governance and use
- Outline the qualifications of team members and advisors
- Suggest a roadmap for the future, including critical dates for your token sale
Creating a Polished 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 should be:
- Accurate: Don’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 or company.
- Professional: Your whitepaper should be clear and free from grammar mistakes. Avoid using jargon or complex language unless absolutely necessary — the aim is to tell your story in a way that convinces potential supporters from all walks of life to contribute to your 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 visual 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 sales@etherparty.com for more details.
