The Complete Guide to STO Whitepaper Writing
You've weighed up your options, explored your use case, sought legal opinion, and now you're ready to launch your STO.
Well, you're nearly ready. Because there's a crucial element of your STO that you won't get very far without. This essential element will turn that alphabet-soup of ideas in your head into a clear, concise and converting tour de force - making your readers sit up and listen, instead of falling asleep.
It's an STO Whitepaper - and you need one.
More importantly, your investors need one. You might know exactly how your idea works, but your investors don't. Your whitepaper is your first and best opportunity to explain it to them.
We're going to walk you through the best practices in STO whitepaper writing right here. But first, without naming and shaming, let's look at some major faux pas in the world of whitepapers.
The Good, the Bad and the Ugly.
We lied. We're not going to look at what makes a good whitepaper. We'll get to that later. But here's three bad and down right ugly common mistakes and why you should avoid them.
1. No Executive Summary
If you open up an STO whitepaper and you're confronted immediately with the tokenomic mechanics, you'd be forgiven for wondering whether this project is a complex scientific experiment, or if it actually has a defined business value proposition.
This is your chance to present your problem, technology and solution in a digestible chunk, around 500 words maximum, so straight off the bat your reader knows who you are and what you stand for.
Most importantly, they can decide if they want to read the rest of your whitepaper, predicated on how interesting your executive summary is - and you do want them to read the rest of your whitepaper, so it's best to get this bit right.
2. Speeling and, grammatical Erorrs
Annoying aren't they? It might seem pedantic. Petty even. But trust us, nothing instills caution in a prospective investor like spelling and grammatical errors the entire way through your whitepaper.
We're not talking one or two mishaps in a 35-page document. However if your whitepaper reads inconsistently, it can quickly become hard to follow - and it makes your job, of explaining your brilliant idea, that little bit harder.
For non-native English speakers, or for those who may be a little unsure, enlist the expertise of a professional proof reader.
3. Assuming too much Knowledge
You might be able to recite the original Bitcoin whitepaper verbatim, but don't assume your readers will. Blockchain developers are a smart bunch, to say the least, but the propensity for developers to jump straight in at the deep end can cause confusion for your readers. All too often, whitepapers will be overly tech heavy too early on, pushing away even the most committed readers.
Remember, with STOs more so than their earlier cousins, the ICO, you're going to be attracting the attention of traditional investors who might not fully understand the need for blockchain technology. Whilst you're definitely not writing a tome extolling the virtues of blockchain for everything under the sun, you do want to show why you've identified it as a necessary solution to your problem.
So, don't come on too strong. Warm your reader up by giving a comprehensive, but succinct introduction as to why cryptographic assets and blockchain are important for your STO.
The Good (No Really)
Without further ado, let's examine what actually makes a great whitepaper. Any STO whitepaper writer will tell you that the following sections and writing styles are crucial for success.
Main Structure
These are the key sections your STO whitepaper can't go without.
Legal Declarations
For an operator, this is the single most important aspect of your whitepaper. Legal declarations should likewise be featured prominently on your website and token sale page. As a basic overview, your legal documentation should include know your customer and anti money laundering (KYC/AML) requirements, disclaimers, terms of investment, and most importantly - a statement of risk.
Unless you're a qualified lawyer don't try and write STO legal documentation alone, hire an accredited law professional with a specialism in cryptographic assets and securities.
Executive Summary
Executive summaries are often written in a more personal tone to the rest of the whitepaper. They are the first meaningful interaction between the reader and the writer, and what you include within your executive summary will influence the attitude of the reader throughout the rest of the whitepaper.
Industry Review
How can you solve a problem, or bring liquidity to a market, which you know nothing about? The industry review section of your whitepaper proves to your potential investors that you are a thought leader for your sector.
The industry review should closely examine the current state of your industry, it's specific pain points, limitations, other emergent technologies which could compete with your solution, and the market potential of your offering.
The industry review should read like an academic literature review - well referenced, properly cited, balanced and unbiased. This is where you use the data to support your unique value proposition. As this section is so key to the rest of your STO whitepaper, if you're in any doubt about how to structure your industry review, contact a professional STO whitepaper writing service.
Your Solution & Technology
The reader has now got a clear and comprehensive view of the problem, and why you're poised to solve it. Now, you can provide a detailed view on the way you're going to do it.
This is where you enter Evangelist mode. Your project will alleviate pain points by [insert a every single reason here]. You can use this section to dig deep in to the mechanism behind your security token, your platform or use case.
Remember, this section can get lengthy. Ensure you continue to engage your reader by breaking down complex concepts in to bite-size chunks.
Tokenomic Model
You've predicated your need for a token. Now explain how it works. This section will be fairly technical and rely heavily on developer input - but make sure you have a competent copywriter look over it prior to publication. You could include your tokenomic model as part of the previous section.
Technicalities aside, this section needs to flow and make sense, even to a layperson.
Security Token Offering
Here, you can delve in to your security token offering, including token amounts, vesting and lockup periods, and distribution methods.
You're going to want to consult with an STO agency and legal professional to decide on the exact specifications and economics of your token sale, but when it comes to writing this section you're going to want to employ a professional writer to ensure it's perfect - as any errors could lead to investor trouble down the line.
Team Introductions
Although it's sometimes omitted, your whitepaper should also ideally include an overview of your team, their expertise, and what makes them so well placed to deliver your project.
Make sure you include any and all relevant experience they have with similar projects.
Once your whitepaper is complete, start from the beginning, and give it a thorough review. Consider having it proof read by a copywriter. Whatever you do - make sure it's given a once over by a legal professional before publication.
Good luck - starting an STO can be a challenging endeavor, but with a solid whitepaper, you're on the right track.
About the Author - Elliot Hill is founder and CEO of https://www.blockwriter.co.uk, a premium copywriting, technical editing, and content marketing micro-agency based in the UK. Elliot has extensive experience in the blockchain space, and understands the intricate requirements of companies working on decentralized technologies.