Whitepaper / Lightpaper
In order to raise money from investors, you will need to set up an appropriate legal entity such as a company or a foundation. To set up such an entity, a lawyer will likely ask to see your whitepaper (or a similar document). This document is key to demonstrating the viability of your project and the thought process behind its development.
Moreover, investors will almost certainly want to see this document, as it communicates your vision, the problem you are addressing, and how you plan to solve it using blockchain technology.
Whitepaper vs Lightpaper
In academia, a document presenting research is typically called a 'paper.' However, in both government and business contexts, the term 'whitepaper' has become a common way to describe a detailed report or proposal.
A 'lightpaper' is a simplified and slimmed-down version of a whitepaper. Some teams favor using a lightpaper over a traditional whitepaper, meaning that the latter is never formally created. If the lightpaper is technical enough and clearly communicates the project's purpose and mechanisms, there might be no need to create a separate, more detailed whitepaper.
In this way, the lightpaper can effectively serve the role of the whitepaper, especially during early stages when succinct communication is preferred. There doesn't seem to be consensus on the difference between the two.
Key Components of a Whitepaper
There is no fixed template for a whitepaper, but certain key topics should always be covered. It is always worth looking at previous whitepapers from famous team, and to an extent the whitepapers of teams who have just recently raised.
As there is a wide variation in how to write a whitepaper it can seem a daunting task to get start with one. Here we outline a potential approach to writing a whitepaper. Some whitepapers only tackle the core technical details of the project, while other whitepapers summarize the whole project at a higher level without too many technical details.
Overview / Executive Summary: Provide a brief overview of your project, the problem it addresses, and the solution you are proposing.
Problem Statement: Clearly articulate the problem your project aims to solve. Explain why it matters and whom it affects.
Solution: Describe your solution in detail and clearly show how it relates to the problem(s) previously outlined. Outline how your solution leverages blockchain technology to solve the identified problem(s). Highlight the unique features of your approach.
Technical Details: Dive into the technical aspects of your project, including how it works, the technology stack being used, and any innovative elements that set it apart. Include diagrams if possible. It is worth providing a high level overview before diving deeper.
Tokenomics: If your project involves a token, describe its purpose, distribution plan, and the economics that will drive its value. Be transparent about token supply, allocation, and usage. This is not about valuations or token prices, but rather the economic principles and functions of your token. It is important to outline what will drive demand and how supply will alter over time.
Tips for Writing a Whitepaper
Be Clear and Concise: Avoid overly complex language. Your goal is to make the information accessible to both technically-minded readers and those with less technical knowledge.
Use Visuals: Incorporate diagrams, charts, and infographics to illustrate technical concepts and tokenomics. Visuals help make complex ideas easier to understand.
Proofread and Get Feedback: A well-written whitepaper reflects professionalism. Make sure to proofread and seek feedback from advisors or peers to improve clarity and quality.
Be Transparent: Transparency is key, especially when discussing tokenomics and legal considerations. Being upfront about risks, challenges, and how funds will be used builds trust.
Example Whitepapers
Here is a mix of whitepapers of varying degrees of depth and technical detail. Some of these links are GitBooks while others are PDFs.
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