Crypto mining do I need to add this into my ICO white paper?

Disclaimer, this article is intended  for the layman who is interested in creating a token.

When you read about issuing new tokens a naive newcomer would think that your token will be mined.

In reality this is not the case for most token issuances that are based on Ethereum (ETH) coins. The underlying ETH will take care of the mining and infrastructure of your newly issued tokens.

Your token will have its own smart contract that will sit on top of the ETH infrastructure. The smart contract that you are issuing on the ETH platform is in essence a new token and how it is used and what the benefits around this are the token.

This is obviously different from what you read about with Bitcoin mining millionaires and the common perception in the traditional news media that new tokens will have some sort of mining attached to them.

In some cases if you decide to issue your own new crypto currency that is outside of this framework then mining is something that is required and will be need to be addressed in the white paper.

crypto mining

 

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