Simple Two-Tier Business Model
Version: 3.0
Updated: December 5, 2025
Overview
Secret Trees operates a straightforward two-tier business model focused on real revenue, not token speculation.
⚠️ UPDATED MODEL: Previous three-tier model simplified to two tiers. NFT/DAO is now T2 Premium enhancement (Phase 2, 2027+), not a separate tier.
Tier 1: B2B Carbon Credits (CCT)
Corporate Carbon Offsetting
Target: Corporations and SMEs seeking carbon offsets
What They Buy:
- Pre-sold carbon credits via Ricardian Contracts
- 1 CCT = 1 tonne CO₂ sequestered in hemp buildings
- Price: €30-45/tonne (below market €60)
- Delivery: 12-18 months after purchase
Payment Terms:
- 50% upfront (€210-315 for 14 tonnes)
- 50% on delivery
- Blockchain verified (MRV device tracking)
- Working towards EU CRCF certification (Q3-Q4 2026)
Benefits for Corporations:
- ✅ Tax write-off (30-50% savings in year of purchase)
- ✅ Below-market pricing (25-50% discount)
- ✅ Guaranteed delivery (Ricardian Contract)
- ✅ Blockchain transparency (MRV device)
- ✅ Professional certificate for CSR reports
Revenue Target: €30-40K Year 0 from 1-2 corporate buyers
Tier 2: Consumer Subscriptions (Two Options)
T2 Basic: Monthly Subscriptions - NO TOKENS (Launch NOW)
Target: Individual consumers
What They Get:
- €10-50/month subscription
- Automatic CO₂ offsetting
- Monthly impact reports
- Transparency dashboard
- Platform access
Benefits for Subscribers:
- ✅ Affordable (€10/month - less than Netflix)
- ✅ Automatic offsetting (no action needed)
- ✅ Transparent tracking (MRV device data)
- ✅ Support local hemp cultivation
- ✅ Cancel anytime (30 days notice)
Revenue Target: €10-15K Year 0 from 100-150 subscribers
T2 Premium: NFT Membership - DAO Governance (Launch LATER - Phase 2, 2027+)
Status: NOT LAUNCHED - Will launch after T2 Basic has 100+ subscribers
What It Is:
- NFT membership (€500-2,000 one-time)
- 1 NFT = 1 tonne CO₂ sequestered (continuous release)
- DAO governance rights (threshold: 3+ NFTs for voting)
- Platform benefits (20% fee discount, priority access)
Legal Structure:
- Current: Secret Trees Gardens LLC/SIA
- Future: Transition to Latvian Biedrība/DAO (Phase 2/3)
- Governance only (NO financial returns)
- Platform proposes → DAO votes → DAO approves → Platform executes
Setup Cost: LLC/SIA Standard Setup Timeline: 2-4 months after Phase 1 complete
Why Wait:
- Need to prove T2 Basic first
- Most governance tokens fail (< 5% participation)
- Build what subscribers actually want
- Add complexity only when validated
Future Utility Token Consideration (Phase 3, 2028+)
Status: Future consideration only (see FUTURE-UTILITY-TOKEN-CONSIDERATION.md)
Potential Purpose: Reward DAO participation (cottage discounts, platform benefits)
Decision Point: 2027 Q4 (only if Phase 1 & 2 successful)
Revenue Streams
Secret Trees generates real revenue from:
- CCT Sales: €30-45/tonne to corporations
- Subscription Fees: €10/month from consumers
- Eco-Tourism: €9-25K per cottage per year
- Platform Fees: 0.5% of marketplace transactions
This is a real business with real revenue, not dependent on token speculation.
Three-Stream Fundraising Model
How We Raise €130K (Complete Infrastructure)
Stream 1: Corporate Pre-Sales (€50-60K)
- Target: 2-3 corporations
- Offer: Pre-sell 14 tonnes CO₂ via Ricardian Contract
- Payment: 50% upfront (€210-315)
- Pricing: €30-45/tonne (below market €60)
- Timeline: Month 3-6
Stream 2: Subscription Pre-Sales (€10-15K)
- Target: 100-150 individual subscribers
- Offer: €10-50/month carbon offsetting
- Payment: 3-6 months prepaid
- Allocation: 0.1 tonne CO₂/year per subscriber
- Timeline: Month 3-6
Stream 3: Investor Funding (€55-65K)
- Target: 5-10 investors
- Offer: Fund infrastructure (complete cottage + MRV + platform)
- Option A: Equity (7-10% in Secret Trees Gardens LLC)
- Option B: Future NFT Membership (Phase 2, 2027+)
- Timeline: Month 3-6
Total: €130,000 from diversified sources (lower risk)
⚠️ Budget Increase: Previous €85K was incomplete (missing €45K in infrastructure costs)
"Everyone Wins" Business Dynamics
How Each Tier Benefits Different Stakeholders
Corporations (Tier 1: Buy CCT)
- ✅ Tax write-offs (30-50% savings in year of purchase)
- ✅ Below-market pricing (€30-45 vs €60/tonne)
- ✅ Guaranteed delivery (Ricardian Contract)
- ✅ Blockchain verified (MRV device tracking)
- ✅ Working towards EU CRCF certification (Q3-Q4 2026)
Consumers (Tier 2: Subscribe)
- ✅ Affordable offsetting (€10/month)
- ✅ Automatic allocation (no action needed)
- ✅ Transparent tracking (MRV device data)
- ✅ Cottage visit discounts (20% off)
- ✅ Future LEAF rewards (loyalty program)
Investors (Stream 3: Fund Infrastructure)
- ✅ Support sustainable project
- ✅ Founding member status
- ✅ Option A: Equity (7-10% in Secret Trees Gardens LLC, profit sharing)
- ✅ Option B: Future NFT Membership (DAO governance, Phase 2, NO financial returns)
Secret Trees (Platform)
- ✅ €130K to execute Year 0 (complete infrastructure)
- ✅ Pre-sold Year 1 harvest
- ✅ Monthly recurring revenue
- ✅ Proven demand before growing
Why This Works
✅ Demand-First: Pre-sell carbon credits before growing hemp (no market risk)
✅ Simple for Consumers: €10/month subscription with NO blockchain complexity
✅ Diversified Funding: Three revenue streams (lower risk)
✅ Real Business: Not dependent on token speculation
✅ Everyone Wins: Corporations get credits, consumers get offsets, we get revenue
Comparison with Other Projects
| Feature | Secret Trees | Typical Carbon Project |
|---|---|---|
| Business Model | 2 tiers (B2B + B2C subscriptions) | 1 tier (B2B only) |
| Consumer Access | Simple €10/month subscription | None or complex tokens |
| Pre-Selling | Year 1 harvest sold BEFORE growing | Grow first, sell later |
| Legal Status | Simple subscriptions (NO tokens Phase 1) | Often complex token structures |
| Profit Sharing | NO (legally safe) | Often YES (security risk) |
| Governance | T2 Premium NFT (Phase 2, optional) | None or complex tokens |
Our Advantages
- ✅ Demand-first: Pre-sell harvest before growing (no market risk)
- ✅ Simple for consumers: €10/month subscription (no blockchain complexity)
- ✅ Diversified funding: 3 streams (lower risk)
- ✅ Legally compliant: No securities issues with subscriptions
- ✅ Everyone wins: Corporations, consumers, investors all benefit
FAQs
Do subscribers get tokens?
No. T2 Basic subscriptions are SIMPLE:
- Just €10-50/month subscription
- Automatic CO₂ offsetting
- No tokens involved
- No blockchain complexity
- No governance rights
Future: T2 Premium NFT membership (Phase 2, 2027+) offers governance rights, but subscriptions work fine without it.
How does Secret Trees make money?
Secret Trees keeps 100% of revenue from:
- CCT sales (€30-45/tonne to corporations)
- Eco-tourism (€9-25K/cottage/year)
- Subscription fees (€10-50/month from consumers)
- Platform fees (0.5% of transactions)
- CCT secondary trading fees (3% - 50% burned, 50% operations)
This is a real business with real revenue, not dependent on token speculation.
When will T2 Premium NFT launch?
After we prove T1 & T2 Basic work (Phase 2, 2027+). We need:
- 100+ T2 Basic subscribers
- 20+ corporate contracts
- Validated demand for governance
Most governance tokens fail because they're built first, validated never. We're doing it backwards: prove the simple model, then add governance IF it adds value.
What do investors get?
Investors (€55-65K stream) have 2 options:
- Option A: Equity (7-10% in Secret Trees Gardens LLC, profit sharing)
- Option B: Future NFT Membership (DAO governance Phase 2, NO financial returns)
This is SEPARATE from consumer subscriptions (which have no tokens in Phase 1).
Next Steps
- Investment Memo - Complete overview
- Growth Model - Detailed projections
- Financial Projections - Revenue breakdown
- Funding Options - How to support
Last Updated: December 5, 2025
Version: 3.0
Model: Simple two-tier business (T2 Basic subscriptions have NO tokens, T2 Premium NFT is Phase 2)