Simple Two-Tier Business Model
Version: 5.0
Updated: December 19, 2025
Author: Secret Trees Core
Overview
Secret Trees is a platform for sustainable hemp product access - primarily through eco-tourism property rentals, with utility access to Ricardian Contracts for CO₂ tracking.
Key Insight: Secret Trees doesn't need €4.2M to build 100 cottages. It needs 100 signed Ricardian Contracts to prove demand FIRST.
The GreenPact Protocol
How Cottages Get Funded (Property Owners Invest ZERO Cash)
Each cottage costs €84K. Here's how it gets funded:
| Source | Amount | % | Who Provides | What They Get |
|---|---|---|---|---|
| Property Owner | €0 | 0% | Land only | €7-10K/year passive income |
| Secret Trees | €84,000 | 100% | Equity + subs + NFTs + profits | 80% rental profits + CCT + by-products |
| Construction Company | €0 | 0% | Contractor (paid for work) | Normal payment for work |
| Total | €84,000 | 100% |
Why GreenPact Works:
- Property owners take ZERO risk (land only, no cash)
- Secret Trees funds 100% from investors (simple, clean)
- Construction companies are contractors (paid normally, no investment)
- Demand-first: 100 Ricardian Contracts BEFORE scaling
- Everyone gets realistic 20% returns at scale (25-50 cottages)
Platform Fee Structure
Secret Trees captures value from coordination, verification, and marketplace services:
| Fee Type | Rate | Paid By | Annual Revenue (100 Cottages) |
|---|---|---|---|
| CCT Origination Fee | 10% | Corporate Buyer | €60K-120K |
| CCT Secondary Trading Fee | 3% | Seller | €15K-30K |
| Cottage Coordination Fee | 5% | Property Owner | €420K (one-time) |
| Rental Booking Commission | 10% | Property Owner | €350K/year |
| Subscription Platform Fee | 100% | Subscriber | €120K-750K/year |
| Verification Service Fee | €200 | Project Developer | €20K/year |
Platform Revenue at Scale (100 Cottages)
| Revenue Stream | Conservative | Optimistic |
|---|---|---|
| CCT Fees (Origination + Trading) | €75K | €150K |
| Cottage Coordination Fees | €420K | €420K |
| Rental Commissions | €220K | €490K |
| Subscriptions | €120K | €750K |
| Verification Fees | €20K | €50K |
| Total Annual Revenue | €855K | €1.86M |
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: 18-24 months after purchase (hemp growing + field retting + construction)
Payment Terms:
- 20% upfront (deposit)
- 80% on delivery (18-24 months)
- Blockchain verified (MRV device tracking)
- Working towards EU CRCF certification (Q3-Q4 2026)
Timeline Reality: Hemp requires 18-24 months from planting to CCT delivery:
- Growing: 100-120 days (spring to fall)
- Field retting: 3-6 weeks (may extend through winter in dry regions)
- Processing & construction: 3-6 months
- MRV verification: Continuous monitoring throughout
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
Platform Revenue: 10% CCT origination fee + 3% secondary trading fee
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)
Platform Revenue: 100% of subscription fees
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)
The Self-Sustaining Flywheel
How 100 Cottages Get Built Without €4.2M
Step 1: Corporate Buyer signs Ricardian Contract
→ Commits to buy 14 CCT at €45/tonne = €630
→ Pays 20% upfront = €126
Step 2: Property Owner provides land (NO cash investment)
→ Land value: €20K-50K (collateral)
→ Cash contribution: €0 (land only!)
Step 3: Secret Trees raises capital from multiple sources
→ Equity investors: €300K (71%)
→ Corporate pre-sales: €50K (12%)
→ Subscriptions: €40K (10%)
→ Crowdfunding: €30K (7%)
→ TOTAL: €420K for 5 cottages
Step 4: Secret Trees hires construction company (contractor)
→ Paid normally for their work (€84K per cottage)
→ NO investment required from contractor
Step 5: Cottage generates revenue
→ Rental income: €25-35K/year
→ CCT delivery: €630 (remaining 80%)
→ Hemp products: €3-6K/year
Step 6: Revenue flows to stakeholders
→ Property Owner: €7-10K/year (rent + 20% profit share)
→ Secret Trees: 80% of rental profits + CCT + by-products
→ Investors: 20% annual returns at scale5-Year Scaling Model
| Year | Cottages | Revenue | Platform Fees | Status |
|---|---|---|---|---|
| 0 | 1-2 | €80K | €8K | Bootstrap (€130K raised) |
| 1 | 2 | €80K | €8K | Proof of concept |
| 2 | 5 | €200K | €20K | Corporate pre-sales fund expansion |
| 3 | 15 | €600K | €60K | Flywheel accelerates |
| 4 | 40 | €1.6M | €160K | Multiple property owners joining |
| 5 | 100 | €4M+ | €400K+ | Self-sustaining ecosystem |
Property Owner Economics
Why Property Owners Love GreenPact
Per Cottage Economics:
| Item | Amount | Who Pays |
|---|---|---|
| Construction Cost | €84,000 | NOT property owner |
| Property Owner Contribution | €0 | Land only |
| Secret Trees Contribution | €84,000 (100%) | Platform funds |
| Construction Company | €0 | Contractor (paid for work) |
Property Owner Annual Income (on ZERO cash investment):
| Stream | Year 1 | Year 3+ |
|---|---|---|
| Fixed Rent from Secret Trees | €3,000-5,000 | €3,000-5,000 |
| Profit Share (20% of rental profits) | €2,000-4,000 | €4,000-6,000 |
| Total | €5,000-9,000 | €7,000-11,000 |
Property Owner Return:
- Investment: €0 (land only)
- Annual income: €7,000-11,000 at maturity
- ROI: Infinite (no cash invested!)
Why Property Owners Win:
- ✅ Zero cash investment required
- ✅ Zero construction risk
- ✅ Guaranteed rental income
- ✅ Profit sharing bonus
- ✅ Asset appreciation (cottage on their land)
Platform Role: Coordination, Not Capital
Secret Trees does NOT provide capital. It provides:
- Matching: Connect property owners with corporate buyers
- Contracts: Ricardian Contract templates and execution
- Verification: AI/MRV carbon sequestration tracking
- Marketplace: CCT trading and rental bookings
- Trust: Reputation system, escrow, dispute resolution
Three-Stream Fundraising Model (Bootstrap Phase)
How We Raise €130K (Proof of Concept)
Stream 1: Corporate Pre-Sales (€50-60K)
- Target: 2-3 corporations
- Offer: Pre-sell 14 tonnes CO₂ via Ricardian Contract
- Payment: 20% upfront deposit
- Pricing: €30-45/tonne (below market €60)
Stream 2: Subscription Pre-Sales (€10-15K)
- Target: 100-150 individual subscribers
- Offer: €10-50/month carbon offsetting
- Payment: 3-6 months prepaid
Stream 3: Investor Funding (€55-65K)
- Target: 5-10 investors
- Option A: Equity (7-10% in Secret Trees Gardens LLC)
- Option B: Future NFT Membership (Phase 2, 2027+)
Total: €130,000 from diversified sources
FAQs
How is this different from other carbon projects?
Most carbon projects are capital-intensive developers. Secret Trees is a platform for sustainable hemp product access that enables cottages to be built through the GreenPact Protocol. Property owners provide land only (zero cash investment), while Secret Trees funds 100% of the €84K cottage (construction companies are just contractors). We capture value through rental profit share + CCT + platform fees.
Do subscribers get tokens?
No. T2 Basic subscriptions are simple:
- Just €10-50/month subscription
- Automatic CO₂ offsetting
- No tokens involved
- No blockchain complexity
How does Secret Trees make money?
Platform fees from coordination services:
- 10% CCT origination fee
- 5% cottage coordination fee
- 10% rental booking commission
- 100% subscription revenue
- 3% CCT secondary trading fee
At 100 cottages: €855K - €1.86M/year
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)
Next Steps
- Investment Memo - Complete overview
- Growth Model - Detailed projections
- Financial Projections - Revenue breakdown
- Funding Options - How to support
Last Updated: December 20, 2025
Version: 5.1 (Hemp timeline corrections)
Author: Secret Trees Core