Executive Summary
This document analyzes the “BlockShark RTE” (Radical Transparency Experience) project, a Web3 initiative based on radical transparency and gamification. At the heart of the project is an “investigation game” where holders of Access NFTs gain access, via AI agents, to the founder’s sensitive personal data, including financial, health, and legal documents.
- Executive Summary
- 1. Project overview and core mechanics
- 1.1 The concept of the “Radical Transparency Experience” (RTE)
- 1.2 The role of AI agents
- 1.3 The phase model
- 2. Tokenomics and ecosystem structure
- 3. Financial projection and profitability
- 3.1 Revenue from primary sales
- 3.2 Revenue scenarios from the secondary market
- 3.3 Personal motivation of the founder
- 4. Probability analysis: The “Lotto comparison”
- 5. Critical Analysis: Risks and Optimization Potential
- 5.1 The “50% Royalty Trap”: Market Acceptance and Technical Implementation
- 5.2 The “small business” tax trap
- 5.3 Technical Challenges and Solutions
- 6. Strategic Summary
The project’s primary goals are twofold: Firstly, it aims to enable the founder to pay off his personal debts and finance a move to Switzerland or El Salvador. Secondly, it serves to finance the Blockshark DAO Treasury and build an engaged community.
The economic model relies on an initial NFT sale expected to generate approximately €30,000 in revenue, as well as an exceptionally high royalty fee of 50% on all secondary market sales. This fee is split 25% between the founder and the DAO. A key innovation is “Phase II,” an ongoing mechanism that allows new NFT holders to participate in the game and qualifies them for a monthly drawing for valuable “TimeLoop-25 Lifetime-Access NFTs.” This cycle creates a continuous incentive for trading on the secondary market.
A key marketing gimmick is the comparison of the probability of winning the monthly draw with that of a lottery jackpot, whereby the chance in the RTE project is portrayed as being hundreds of thousands to millions of times higher.
The critical success factors and greatest risks lie in the technical feasibility and market acceptance of the 50% royalty fee, as well as in managing German tax liabilities. In particular, the “small business trap” poses the risk that the founder will have to pay VAT on all primary income, which significantly impacts financial planning. The project is described as a potentially “ingenious way out of the crisis,” but its success depends on resolving these technical and tax challenges.
——————————————————————————–
1. Project overview and core mechanics
1.1 The concept of the “Radical Transparency Experience” (RTE)
The Blockshark RTE project is designed as a self-contained ecosystem, described as an “economic machine.” At its core is an interactive experience where participants gain access to the founder’s authentic and sensitive personal documents. This includes financial records (debts), health information (psychiatric discharge summaries), a police clearance certificate, and eviction notices. Access to this information is controlled through possession of a specific NFT (access token).
1.2 The role of AI agents
Interaction with the documents is not direct, but rather via four specialized AI agents. Each agent is trained on a specific subject area and acts as an interface for users. Users can ask the agents questions to extract information from the underlying documents. The goal for users is to form an assessment of the founder’s situation by questioning the AIs.
1.3 The phase model
The project is divided into two main phases, which are intended to create a sustainable incentive cycle.
- Phase I: Initial Launch and Raffle
- Sale of 3,000 RTE Access NFTs at a price of 0.004 ETH each.
- An initial lottery of 1,200 additional Access NFTs to early participants who will run through the AI agents and provide correct assessments.
- Phase II: Continuous “Experience Loop”
- After completion of Phase I, the system will be opened to new NFT owners who have acquired their tokens on the secondary market.
- The system uses blockchain analysis to check whether the user is a “new owner”.
- If this is the case, the new owner is entitled to also go through the four AI agents and give an assessment.
- This participation qualifies him for the monthly raffle of “TimeLoop-25” NFTs, which represents a permanent purchase incentive on the secondary market.
2. Tokenomics and ecosystem structure
2.1 The NFT Collections
The ecosystem consists of several NFT types with different functions.
| NFT type | Offer | Price / Award | Main purpose |
| BlockShark RTE Access NFT | 4,200 units | 3.000: Selling for 0.004 ETH (~10 €)1.200: Lottery in Phase I | Access to the RTE experience with the AI agents; qualification for the monthly prize draw. |
| TimeLoop-25 Lifetime-Access-NFT | 500 pieces | Giveaway: 25 per month for 20 months | Reward for qualified RTE participants; grants lifetime access to other Blockshark projects. |
| Strategic Reserve | 4,150 units | Held internally | The 500 “TimeLoop-25” NFTs were given away as giveaways. |
2.2 The 50% royalty structure
A key feature of the “BlockShark RTE” NFT collection is an exceptionally high royalty fee of 50% on all secondary market sales. This fee is divided as follows:
- 25% an die DAO Treasury: To finance Blockshark DAO.
- 25% to the founder personally: To pay off his debts.
- 50% to the seller: Less the fees of the respective marketplace.
This structure means that an NFT bought for 0.004 ETH (~10 €) must be resold for at least 0.008 ETH (~20 €) for the seller to recoup their original investment (break-even).
2.3 The cycle for secondary market buyers
Phase II of the project is designed to create continuous value and incentive for owning the RTE Access NFT. The mechanics work as follows:
- A user buys an RTE Access NFT on the secondary market.
- The system identifies the wallet as the “new holder”.
- The user receives one-time access to the experience with the four AI agents.
- Once completed, the user provides an assessment. The AI evaluates its accuracy.
- Based on the number of correct predictions, the user receives “tickets” for the monthly raffle.
- 2 correct assessments: 1 ticket
- 3 correct predictions: 2 tickets (double chance)
- 4 correct predictions: 3 tickets (triple chance)
- Each month, 25 “TimeLoop-25” NFTs are raffled off among all qualified participants from the previous month.
3. Financial projection and profitability
3.1 Revenue from primary sales
The sale of the 3,000 NFTs intended for the public mint at 0.004 ETH (~10 €) each is expected to generate gross revenue of 30.000 € generate. This sum serves as seed capital to cover costs and for initial debt repayment.
3.2 Revenue scenarios from the secondary market
The royalty revenue is a key element of the financial plan. The projections are based on a sample selling price of €20.
- Scenario 1: 1,000 transactions
- Trading volume: €20,000
- Total royalty earnings (50%): €10,000
- Founder’s share (25%): €5,000
- DAO share (25%): €5,000
- Scenario 2: 10,000 transactions
- Trading volume: €200,000
- Total royalty earnings (50%): €100,000
- Founder’s share (25%): €50,000
- DAO share (25%): €50,000
Total income for the founder (optimistic scenario): 30.000 € (Mint) + 50.000 € (Trading) = 80.000 €.
3.3 Personal motivation of the founder
The founder explicitly states his goal of using the proceeds to pay off all debts in order to “leave no scorched earth behind” and to realize his plans with Switzerland and El Salvador.
4. Probability analysis: The “Lotto comparison”
A key marketing tool is the comparison of the probability of winning the monthly draw with that of winning the main prize in the German lottery “6 out of 49” (chance of 1 in approximately 140 million).
4.1 Chances of winning in the monthly prize draw
| Scenario (participants per month) | Basic chance of winning (with 25 prizes) | How much more likely than winning the lottery jackpot |
| 100 participants | 25% (1 to 4) | approximately 35 million times |
| 1,000 participants | 2.5% (1 to 40) | approximately 3.5 million times |
| 10,000 participants | 0.25% (1 in 400) | approx. 350,000 Mal |
These basic chances increase for participants who receive more tickets due to more correct predictions.
4.2 Marketing Implications
The analysis suggests actively using this drastic difference in marketing, with slogans such as:“Forget the lottery. With Blockshark RTE, you don’t have a 1 in 140 million chance. You have a real chance.”
5. Critical Analysis: Risks and Optimization Potential
The source documents identify several critical risks and propose concrete solutions to ensure the success of the project.
5.1 The “50% Royalty Trap”: Market Acceptance and Technical Implementation
- Problem: A 50% royalty fee is extremely unusual in the market and is considered potentially “toxic” for traders. Large marketplaces like OpenSea and Blur no longer consistently enforce royalties, meaning buyers can often reduce them to 0%.
- Solution & Status: This risk is mitigated by two measures:
- NFTs2Me “Creator Fee Enforcement”: The smart contract is configured to block transactions that do not go through marketplaces that respect the established royalties.
- Own marketplace (“BlockShark Store”): The project will operate its own controlled trading platform where the 50% rule is guaranteed to be enforced. This creates a “closed-loop ecosystem”.
- Recommendation: Despite the technical feasibility, a reduction of the royalty to a market-standard rate of 10-15% is recommended to avoid discouraging trading volume. The high fee should be clearly communicated as an “experience fee” and not as a speculation tax.
5.2 The “small business” tax trap
- Problem: The founder operates under the German small business regulation (revenue limit of €22,000). The planned initial sale of €30,000 immediately exceeds this limit.
- Consequence: He will be liable for VAT for the entire fiscal year. This means that VAT (19%) must be paid on the full €30,000, resulting in a tax liability of approximately €4,800, which must be settled from the revenue. Additionally, the remaining profit is subject to personal income tax.
- Recommendation: It is strongly recommended to immediately put 40-50% of all income into a separate account as a tax reserve in order to avoid new debts with the tax office.
5.3 Technical Challenges and Solutions
- New owner detection: The system must reliably verify via the blockchain (RPC queries) how long a wallet has held an NFT to determine whether a user is eligible to participate in Phase II. This requires a backend database that maintains the game status (Wallet_Address | Has_Played_Current_Month) saves.
- Network election: To avoid high transaction costs (gas fees) that would exceed the value of a €10 NFT, the launch will take place on a cost-effective blockchain such as…Polygon oder BaseHighly recommended.
6. Strategic Summary
The Blockshark RTE project combines a unique and bold story of radical transparency with a well-thought-out gamification model designed to create sustainable value for the issued NFTs.
- Strengthen: The core idea is unique and generates narrative appeal. The extremely high odds of winning compared to lotteries are a strong marketing argument. The technical safeguarding of the royalties through a dedicated marketplace and contract enforcement eliminates a significant risk of traditional NFT projects.
- Risks: The biggest remaining risks are market acceptance of the high 50% royalty fee and the correct application of German tax law. Failure to establish an adequate tax reserve could jeopardize the project’s financial success.
Conclusion: The concept is described as an “ingenious way out of the crisis.” Its success depends crucially on mastering the critical factors – the technical implementation of the economic model and disciplined tax planning. If these conditions are met, the project has the potential to achieve its goals.
