Frequently Asked Questions
Updated: December 19, 2025
Author: Secret Trees Core
Business Model
How does the GreenPact model work?
GreenPact Protocol is how cottages get funded through a demand-first approach:
| 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% |
Key Insight: Property owners provide land only (zero cash investment). Secret Trees funds 100% of the cottage - construction companies are just contractors who get paid normally. Target: 100 Ricardian Contracts BEFORE scaling construction.
What does the property owner get?
Per Cottage Economics (Zero Investment):
| Item | Amount |
|---|---|
| Fixed Rent | €3,000-5,000/year |
| Profit Share (20%) | €4,000-5,000/year |
| Total Income | €7,000-10,000/year |
| Investment Required | €0 (land only) |
Why Property Owners Line Up: Passive income with zero risk - they provide land only and manage their own bookings.
What does Secret Trees get?
Platform Fee Structure:
| Fee Type | Rate | Annual Revenue (100 Cottages) |
|---|---|---|
| CCT Origination Fee | 10% | €60K-120K |
| Cottage Coordination Fee | 5% | €420K (one-time) |
| Rental Booking Commission | 10% | €350K/year |
| Subscription Platform Fee | 100% | €120K-750K/year |
| Total Platform Revenue | €855K - €1.86M/year |
Key Point: Secret Trees is a coordination platform, NOT a capital-intensive developer. We capture value through fees, not capital deployment.
What if you can't sell the carbon credits?
4 revenue streams protect against market risk:
- Cottage Rental (primary): €22-49K/year (30-70% occupancy)
- Hemp Seeds & Flowers: €3-6K/year (available from first harvest)
- Subscriptions: €12-75K/year (100-1,000 clients)
- Carbon Credits (bonus): €420-840 Year 1, €6-12K at full scale
Result: We make money even if carbon credit market crashes. Cottage rental alone covers costs. Hemp seeds & flowers provide immediate Phase 1 revenue.
How do you avoid burning hemp with no secondary uses?
Every part of hemp plant has commercial value:
- Stalks: Hempcrete construction, insulation
- Fibers: Textiles, rope, paper
- Seeds: Nutraceuticals, CBD products
- Biomass: Bioenergy pellets, heating fuel
- Waste: Bioplastics, composites
Total market: €31B+ across 6 categories
Result: Zero waste. Constant revenue stream.
Technology
Doesn't blockchain have a huge carbon footprint?
Short answer: We use blockchain as a backend transparency tool. Polygon network uses 99.9% less energy than Bitcoin.
Long answer:
Our Approach: Blockchain for backend transparency, not front-facing marketing.
Why Polygon:
- Proof-of-Stake consensus (not energy-intensive Proof-of-Work)
- 99.9% more efficient than Bitcoin
- 1 transaction = 0.001% of Bitcoin's energy
- Carbon-negative when combined with hemp sequestration
Corporate Buyer Benefits:
- Immutable record of carbon credits
- Transparent verification trail
- Audit requirements met
- Regulatory compliance
Our Net Impact:
- Hemp sequesters: 14 tonnes CO₂ per hectare
- Polygon transactions: ~0.001 tonnes CO₂ per year
- Net Result: 13,999 tonnes CO₂ removed (carbon-negative)
Why use blockchain at all?
For B2B corporate buyers: Transparency and auditability
Benefits:
- Tamper-proof: Can't fake carbon sequestration data
- Real-time tracking: Corporations see CO₂ progress live
- Auditable: Third-party verifiers can check everything
- Regulatory compliance: Meets EU sustainability reporting requirements
Alternative: Traditional carbon registries (slow, expensive, opaque)
Our approach: Blockchain for transparency, IoT sensors for verification, human verifiers for quality control.
Do I need to understand blockchain to buy carbon credits?
No.
For B2B corporate buyers:
- You get documentation for CSR reports (working towards EU CRCF certification Q3-Q4 2026)
- You get access to a dashboard (like Google Analytics)
- You see real-time CO₂ tracking
- You don't need to know how blockchain works
- You get professional certificate upon EU CRCF certification completion
Think of it like email: You don't need to understand SMTP protocol to send an email. Same with our blockchain - it works behind the scenes.
Investment
What's your business model?
Secret Trees is a platform for sustainable hemp product access - rentals, property assets, and carbon tracking.
The GreenPact Protocol enables 100 cottages to be built without requiring property owners to invest cash:
- Secret Trees funds 100% (€84K from equity + subs + NFTs + profits)
- Construction companies are contractors (paid normally, no investment required)
- Property owners provide land only (€0 cash)
Platform Revenue at 100 Cottages: €855K - €1.86M/year from:
- 10% CCT origination fee
- 5% cottage coordination fee
- 10% rental booking commission
- 100% subscription revenue
Key Insight: Build demand FIRST (100 Ricardian Contracts), then scale construction. 20% returns achievable at 25-50 cottage scale.
Who are your customers?
PRIMARY: Corporations (ongoing business)
- Companies needing carbon offsets
- Tax write-offs + certificates
- Simple, transactional
- Continuous revenue stream
SECONDARY: Climate Tech VCs (optional scaling)
- If we want to grow faster
- Not a "phase" or requirement
- Your choice, your timing
NOT: Retail investors or token buyers
What is EU CRCF certification?
Official EU framework for carbon projects (Regulation 2024/3012, December 2024).
Four Categories:
- Permanent Carbon Removals (direct air capture)
- Carbon Farming - Soil (agricultural practices)
- Carbon Farming - Forests (afforestation)
- Carbon Storage in Products ← Our category
Our Certification:
- Category 4: Carbon Storage in Products
- Qualification: Hempcrete buildings (50+ year lifespan)
- Timeline: 6-11 months to first certification
- Costs: €8,500-21,500 initial + €2,000-5,000 annual
- Status: Research complete, certification bodies contacted
Why This Matters:
- Required for corporate sales
- Official EU certification
- Becoming the "gold standard"
- Traditional registries being replaced
What are you actually measuring?
We measure hemp growth, not atmospheric CO₂ levels.
What We Track:
- Hemp plant height and biomass
- Growth rate over time
- Carbon content in biomass
- Sequestration rate (tonnes CO₂/hectare)
What We DON'T Measure:
- Atmospheric CO₂ levels (those are constant at 420 ppm)
- Air quality
- Weather patterns
Why: Standard carbon methodology measures plant carbon accumulation, not air CO₂.
Verification: IoT sensors track plant growth → Third-party CRCF certifiers validate → Carbon credits issued.
Why GPS tracking?
Verification of field location, not tracking movement.
Purpose:
- Proves hemp is grown where we say it is
- Required for EU CRCF certification
- Corporate buyers need location verification
- Prevents fraud (claiming credits for non-existent fields)
What GPS Does: Records field coordinates once What GPS Doesn't Do: Track people, vehicles, or movement
Think of it like: A property deed - proves location, doesn't track activity.
Why satellite imagery?
Remote verification of hemp growth (cost savings).
Benefits:
- Reduces on-site verification costs: €5K-€15K → €1.5K-€4.5K (70% savings)
- Faster verification: 1-2 months vs 6-12 months
- More frequent monitoring: Monthly vs annual
- Copernicus satellite system (EU-provided, cost-effective)
What Satellites See:
- Hemp field boundaries
- Plant growth over time
- Harvest timing
- Field conditions
Combined with: IoT sensors (ground truth) + Third-party verifiers (validation)
What's the difference between B2B buyers and subscribers?
Different customer types, not sequential phases.
B2B Corporate Buyers (Tier 1 - Primary Business):
- Buy: Pre-purchase carbon credits (CCT tokens)
- Get: Documentation for CSR reports (working towards EU CRCF certification), tax write-off, dashboard access
- Purpose: Carbon offset compliance and CSR reporting
- Timeline: 1-2 weeks to close
- Amount: €1,500-€5,000 per contract
- Note: Professional certificate upon EU CRCF certification completion (Q3-Q4 2026)
- Pricing: €30-45/tonne (25-50% below market)
Individual/Business Subscribers (Tier 2 - Secondary Revenue):
- Subscribe: Monthly carbon offset subscriptions
- Get: Real-time tracking, monthly reports, future LEAF rewards
- Purpose: Personal/business environmental impact
- Timeline: Instant signup
- Amount: €10-75/month (Individual, Family, or Business tiers)
- Benefits: Cancel anytime, no lock-in
Key Difference: B2B is our primary business (ongoing corporate sales). Subscriptions provide steady secondary revenue and future LEAF reward eligibility.
Operations
How do you verify carbon sequestration?
Three-tier system:
IoT Sensors (automated)
- Measure CO₂ levels in real-time
- GPS tracking of hemp fields
- Blockchain-verified data
Remote Verifiers (human)
- Review sensor data
- Check satellite imagery
- Verify calculations
On-Site Assessment (physical)
- Visit property in person
- Measure hemp growth
- Confirm construction progress
Cost: €1,500-€4,500 per verification (vs €5K-€15K traditional)
Timeline: 1-2 months (vs 6-12 months traditional)
What happens if the project fails?
B2B Buyers: Ricardian Contract includes refund provisions
- If we don't deliver carbon credits, you get refund
- Take-or-pay clause protects both sides
- Escrow holds funds until milestones met
Token Investors: Utility tokens (not securities)
- No profit sharing = no financial loss if project fails
- Tokens still have governance utility
- Platform continues even if Secret Trees Gardens fails
Risk Mitigation: Eco-tourism revenue (95% of income) doesn't depend on carbon credits.
How does the flywheel scale to 100 cottages?
The Self-Sustaining Flywheel:
| Year | Cottages | Total Revenue | Platform Fees |
|---|---|---|---|
| 0 | 1-2 | €0 (building) | €0 |
| 1 | 2 | €80K | €8K |
| 2 | 5 | €200K | €20K |
| 3 | 15 | €600K | €60K |
| 4 | 40 | €1.6M | €160K |
| 5 | 100 | €4M+ | €400K+ |
How It Works:
- Build demand first (100 Ricardian Contracts)
- Secret Trees funds 100% of cottages (€84K each) - construction companies are contractors
- Property owners see €7-10K/year income on zero investment, more join
- More cottages = more CCTs = more corporate buyers
- 20% returns achieved at 25-50 cottage scale
Hemp Growing & Processing
How long does it take to grow hemp for hempcrete?
Hemp Growing Timeline:
| Stage | Duration | Notes |
|---|---|---|
| Growing | 100-120 days | Late spring to late summer/early fall |
| Field Retting | 3-6 weeks | Dew retting on field (may extend through winter in dry regions) |
| Drying | 1-2 weeks | After retting complete |
| Decortication | 1-2 weeks | Separate hurd from fiber |
| Hempcrete Curing | 2-4 weeks | After application |
| Total | 18-24 months | From planting to cottage completion |
Critical Note: In regions with little rain, field retting may NOT complete before winter. Stalks are left on field until spring ("winter retting") and baled in May. This means hemp planted in Year 1 may not be ready for hempcrete until Year 2.
What is the realistic timeline from planting to CCT delivery?
18-24 Months for Full MRV-Verified Carbon Credits:
The GreenPact Protocol uses proper MRV (Monitoring, Reporting, Verification) sensors to track carbon sequestration from planting through to hempcrete construction. This requires the full hemp lifecycle:
| Phase | Duration | Notes |
|---|---|---|
| Land Preparation | 1-2 months | Site prep, soil testing |
| Hemp Growing | 100-120 days | Spring planting to fall harvest |
| Field Retting | 3-6 weeks | May extend through winter |
| Processing | 1-2 months | Decortication, hempcrete production |
| Construction | 2-4 months | Cottage building and curing |
| Total | 18-24 months | From planting to CCT delivery |
Why This Timeline is Non-Negotiable:
- ✅ MRV verification: Sensors track CO₂ from planting through construction
- ✅ EU CRCF compliance: Requires documented sequestration chain
- ✅ Quality hempcrete: Proper retting = better building material
- ✅ Credible carbon credits: Full lifecycle verification
Corporate Buyer Expectation: Ricardian Contracts specify 18-24 month delivery timeline with 50% upfront payment.
What is field retting and why does it take so long?
Field Retting Explained:
Retting is the process of breaking down the pectin that binds hemp fibers to the woody core (hurd). For hempcrete, we need the hurd.
How It Works:
- Hemp stalks are cut and left on the field
- Dew and rain moisture activates microorganisms
- Microorganisms break down pectin over 3-6 weeks
- Stalks are turned periodically for even retting
- When ready, stalks are baled and processed
Weather Dependency:
- Ideal conditions: Alternating wet/dry periods
- Dry regions: Retting may not complete before winter
- Winter retting: Stalks left on field until spring (baled in May)
- Wet regions: Faster retting but risk of over-retting
Why We Can't Skip It:
- Un-retted hemp is difficult to process
- Pectin interferes with hempcrete binding
- Proper retting = better hempcrete quality
What equipment is required for hemp cultivation?
Standard farm equipment is sufficient - no specialized hemp harvester required.
The field retting process (18-24 months) eliminates the need for expensive specialized machinery. When stalks dry naturally on the field, they become soft enough to handle with regular farm equipment.
Equipment Requirements by Stage:
| Stage | Equipment | Source |
|---|---|---|
| Land Preparation | Plow, disc harrow, cultivator | Property owner or rental |
| Sowing | Standard seeder | Property owner or rental |
| Cutting | Standard mower | Property owner |
| Field Retting | None (natural process) | Free |
| Baling | Standard baler | Property owner or local farmer |
| Transport | Tractor and trailer | Property owner |
Cost Estimates by Scale:
| Area | Equipment Type | Approximate Cost |
|---|---|---|
| 1 hectare | Small tractor + rentals | €500-800 |
| 10 hectares | Full-size equipment + rentals | €2,000-4,000 |
| 14 hectares | Full-scale operation | €3,000-6,000 |
Property Owner Responsibilities:
Property owners coordinate with local farmers for harvest and straw preparation:
- Arrange equipment access through ownership or rental
- Coordinate with local agricultural contractors for harvesting support
- Bale dried stalks for delivery to construction partner
- Platform assists in finding local farmers and coordinates the process
Key Advantage: Field retting means no specialized hemp harvester is needed. Standard agricultural equipment that most farmers already own or can easily rent is sufficient for the entire cultivation and harvest process.
Contact
Have more questions?
Email: ilvers.sermols@secrettrees.io
Phone: +371 25285999
Website: secrettrees.io
Last Updated: December 20, 2025
Author: Secret Trees Core