ICO white paper is clear, concise and extensive details. As we discussed in our part 1, part 2 further entails, how you should work on problem, solution, tokenization, team working on the project and technology stack.
Step 4: Problem
The problem statement gives a detailed overview of the market and narrates how there exists a gap. This part is related to market consideration. However, here you go deep into problem dissection.
Explain your investor where in the market, your product fits. Back up with facts, research, and analysis.
Step 5: Solution
Here you suggest solution. Most of the ICOs fail because their white paper fails to convince why or how the ICO is solving the particular problem. Technical solution is shared in this section of the section. Blockchain technology utilization is emphasized upon, such as smart contracts, token standards etc.
This section also contains the ‘state of the project’ that means, what is the current state of the project i.e. prototype data, first users, development strategy and goals.
Step 6: Tokenization
This is the most important part of the ICO white paper
. Although, we did consider tokenization but its detailed explanation is given in this section. Here, you explain why you picked a certain type of token and how it is going with the concept or idea of the ICO. Second, you give the numbers of token specific for each ICO stage.
Share token operations, its role in the business model and the process of token distribution. Authors of the white paper must present data in the form of graphs and diagrams as it will help readers understand better.
Step 7: Technology Stack
After finalization of token’s type, number, and distribution strategy, there comes the technology stack. However, you discuss technical solution in step 5 but here you go further into the details.
Here architectural diagrams are also shared. Front end and back end technologies are shared. How database will be managed are also explained. Do entail security measures for the ICO.
Step 8: Team and Roadmap
Team profiles with the professional background if mentioned in the white paper, it builds trust. This gives credibility and investors read if a strong team is working on the project. Investors even check their social profiles.
In the roadmap, you tell ‘how you will use the funds?’ It also contains a future-proof i.e. technical description and development plans for the next 1-2 years.
How to Write ICO White Paper: Important Steps Guide Part 1