Platform Business Model
Updated: December 19, 2025
Version: 4.0
Author: Secret Trees Core
Platform Role: Sustainable Hemp Product Access
Key Insight: Secret Trees is a platform for sustainable hemp product access - rentals, property assets, and carbon tracking through blockchain-verified Ricardian Contracts.
The platform's value lies in:
- Property Assets: Hemp cottages for eco-tourism rental
- Hemp Ecosystem: Seeds, flowers, construction materials
- Carbon Tracking: Ricardian Contracts for CO₂ verification
- Coordination: Construction contractors, property owners, corporate buyers
- Marketplace: CCT trading and rental bookings
What Secret Trees Does:
- ✅ Funds 100% of cottage construction (€84K from equity + subs + NFTs + profits)
- ✅ Hires construction companies as contractors (paid normally, no investment required)
- ✅ Takes rental profit share (80% after property owner share)
- ✅ Captures CCT revenue and hemp by-products
Platform Fee Structure
Secret Trees captures value from coordination, verification, and marketplace services:
| Fee Type | Rate | Paid By | Trigger Event |
|---|---|---|---|
| CCT Origination Fee | 10% | Corporate Buyer | When CCT is first sold |
| CCT Secondary Trading Fee | 3% | Seller | When CCT is resold |
| Cottage Coordination Fee | 5% | Property Owner | Upon cottage completion |
| Rental Booking Commission | 10% | Property Owner | Per booking |
| Subscription Platform Fee | 100% | Subscriber | Monthly |
| Verification Service Fee | €200 | Project Developer | Per verification |
Fee Rationale
CCT Origination Fee (10%): This is the core value capture. When Secret Trees facilitates a €45/tonne CCT sale, it takes €4.50. This is justified because the platform provides:
- The verified buyer
- The Ricardian Contract infrastructure
- The MRV verification
- The legal framework
Comparable carbon credit platforms charge 5-15%.
Cottage Coordination Fee (5%): A one-time fee of €4,200 per cottage (5% of €84K) for coordinating the entire process:
- Matching property owner with construction contractor
- Setting up the Ricardian Contract
- Arranging financing
- Managing the project
This is comparable to real estate agent fees (5-6%) and significantly below construction management fees (10-15%).
Rental Booking Commission (10%): Standard for vacation rental platforms (Airbnb charges 14-16% total). Secret Trees provides the booking system, marketing, and trust infrastructure.
Subscription Revenue (100%): Subscriptions are a direct platform product. The €10/month individual subscription and €75/month business subscription are pure platform revenue.
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 |
The GreenPact Protocol
How Cottages Get Funded (Demand-First Model)
Each cottage costs €84K. Here's how it gets funded through GreenPact:
| Source | Amount | % | Who Provides |
|---|---|---|---|
| Secret Trees | €84,000 | 100% | Equity + subs + NFTs + profits |
| Construction Company | €0 | 0% | Contractor (paid normally) |
| Property Owner | €0 | 0% | Land only (no cash) |
| Total | €84,000 | 100% |
Why This Works: Property owners provide land only (zero cash investment). Secret Trees funds 100% of construction - construction companies are just contractors who get paid normally (no investment required from them). Target: 100 Ricardian Contracts BEFORE scaling construction (demand-first). Everyone achieves 20% returns at scale (25-50 cottages).
Operational Model: Platform-Coordinated Cultivation
How Hemp Cultivation Works
| Stage | Platform Role | Property Owner Role |
|---|---|---|
| Seeds | Provides seeds OR CCT revenue (€2-3K) | Receives seeds |
| Land Preparation | Provides cultivation guidance | Coordinates plowing, tilling, cultivating (standard farm equipment) |
| Growing | AI/MRV monitors growth, provides guidance | Plants and maintains hemp |
| Harvest | Determines optimal timing via AI | Coordinates with local farmers for cutting and field retting |
| Field Retting | Monitors progress (3-6 weeks, may extend through winter) | Turns stalks periodically; stalks left on field to dry naturally |
| Processing | Coordinates delivery to contractor | Bales dried stalks with standard equipment; delivers to construction partner |
| Construction | MRV verification, mints CCT tokens | Provides land access |
Equipment Note: Field retting (18-24 month process) eliminates the need for specialized hemp harvesters. Property owners use standard farm equipment (plow, cultivator, mower, baler) or coordinate with local agricultural contractors. Platform assists in finding local farmers for harvest support.
Risk Distribution
| Risk Type | Who Bears It |
|---|---|
| Construction Risk | Secret Trees (€84K investment) |
| Operational Risk | Platform (45% of revenue covers operations) |
| Market Risk | Shared (occupancy, carbon prices) |
| Regulatory Risk | Platform (carbon credit compliance) |
Property Owner Protection
- ✅ NO construction risk (€84K saved - Secret Trees funds 100%)
- ✅ NO operational risk
- ✅ Guaranteed €3-5K/year fixed rent + 20% profit share
- ✅ 100% passive income after initial setup
EU CRCF Certification
Official Framework: EU Regulation 2024/3012 (December 2024)
Our Certification Path
Category 4: Carbon Storage in Products
Why Hempcrete Qualifies:
- Permanent building material (50+ year lifespan)
- Carbon stored in building structure
- Measurable carbon content
- Verifiable construction process
- Meets EU durability standards
Certification Timeline:
- Step 1: Application (2-3 months)
- Step 2: Verification (3-6 months)
- Step 3: Ongoing Monitoring (Annual)
- Total to first certification: 6-11 months
Certification Costs:
- Initial certification: €8,500-21,500
- Annual monitoring: €2,000-5,000
- 5-year total: €16,500-46,500
Why This Matters:
- Required for corporate sales
- Premium pricing: €45-60/tonne vs €30-40 uncertified
- Competitive advantage: Early certification = market leadership
Demand-First Approach
The Economic Challenge (Traditional Model)
Traditional Model: Grow hemp → Find buyers → Sell at market price → Hope for profit
The Challenge: Farmers must sell hemp to make money, creating dependency on volatile market prices.
Our Solution: Pre-Sold Carbon Credits
Secret Trees Model: Pre-sell carbon credits → Grow hemp → Deliver to committed buyers → Guaranteed profit
Key Insight (from An): We get paid to grow hemp that we get to keep. Traditional farmers must sell hemp to make money. We don't need hemp buyers because carbon credits cover our costs.
How It Works:
- Pre-Sold Carbon Credits: Buyers commit BEFORE hemp is grown
- Multiple Exit Strategies: Build cottages, sell hemp products, or store for future use
- Zero Market Risk: Not dependent on commodity prices or finding buyers
Revenue Streams (4 Per Property)
1. Cottage Rental
- Revenue: €22-49K/year (30-70% occupancy)
- Platform Share: 10% booking commission
2. Carbon Credits (CCT)
- Revenue: €420-840 Year 1 (14 tonnes), €6-12K at full scale
- Platform Share: 10% origination fee + 3% secondary trading
3. Hemp Seeds & Flowers
- Revenue: €3-6K/year (available from first harvest)
- Platform Share: Coordination fee only
4. Subscriptions
- Revenue: €12-75K/year (100-1000 clients)
- Platform Share: 100% (direct platform product)
Total per Property: €43-142K/year revenue
The Self-Sustaining Flywheel
5-Year Scaling Model
| Year | Cottages | Total Revenue | Platform Fees | Status |
|---|---|---|---|---|
| 0 | 1-2 | €0 (building) | €0 | 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 |
How the Flywheel Works
Corporate Buyers pre-purchase CCTs
↓ €€€ (upfront payments)
Secret Trees Platform (coordination + funding)
↓ Funds 100% + contracts + verification
Property Owners provide land + Construction Companies build
↓ Cottages completed
Cottages generate revenue
↓ Rental + CCT + Hemp + Subscriptions
Revenue flows to stakeholders
↓ Platform fees reinvested
More cottages built (flywheel accelerates)Why GreenPact Works
For Property Owners
- ✅ €7-10K/year income on ZERO cash investment
- ✅ Provide land only - no construction risk
- ✅ Manage their own bookings (their business)
- ✅ Professional platform support
For Corporations
- ✅ 25-50% below market pricing
- ✅ Immediate tax write-off
- ✅ Guaranteed delivery (Ricardian Contract)
- ✅ Blockchain verified
For Construction Companies (Contractors)
- ✅ Steady work pipeline (5, 10, 50+ cottages)
- ✅ Paid normally for work (no investment required)
- ✅ Hempcrete supplied by Secret Trees
- ✅ Specialty in sustainable construction (portfolio builder)
For Secret Trees Platform
- ✅ Multiple funding sources (equity + subs + NFTs + profits)
- ✅ 80% rental profit share + CCT + by-products
- ✅ 20% returns achievable at 25-50 cottage scale
- ✅ €855K-1.86M at 100 cottages
Next Steps
- Investment Business Model - Two-tier model details
- Growth Model - 5-year projections
- Funding Options - Three funding pillars
- Financial Projections - Detailed numbers
Last Updated: December 16, 2025
Version: 3.0
Author: Secret Trees Core