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Do you guys know of any kind of documentation standards that are widely used within the Ethereum community? Any kind of documentation tools will also be of great help. Thanks in advance.

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The Solidity Docs have a section describing the best way to document smart contracts. This special form is named the Ethereum Natural Language Specification Format (NatSpec).

Solidity contracts can use a special form of comments to provide rich documentation for functions, return variables and more. This special form is named the Ethereum Natural Language Specification Format (NatSpec).

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    Your link is very helpful. In order to generate the output, it mentions solc --userdoc --devdoc, which generates JSON output. Would you happen to know any tool which generates some sort of standard PDF document? Something similar to Doxygen I suppose...? – goodvibration Jun 13 at 13:44

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