Investor Memorandum Nr.2: The Blockshark Radical Transparency Experience (RTE)

1. Introduction: The Investment Opportunity

The BlockShark RTE (Radical Transparency Experience) project represents a strategic investment opportunity that differs fundamentally from conventional NFT collections. It is not just another speculative drop, but a novel economic model in the Web3 space. At its core, the project combines deep, narrative storytelling with a sustainable, self-contained financial incentive system. This architecture blends narrative immersion with rigorous game-theoretic mechanics to establish an endogenous and sustainable value driver independent of external market hype.

The project’s central investment thesis rests on three fundamental pillars that create a robust and self-sustaining ecosystem:

• Autonomous economic machine:The project is designed as a self-contained system that, through the mechanics of Phase II, generates continuous demand on the secondary market and thus sustains itself.
• Gamified engagement:The interactive “Radical Transparency Experience” with AI-powered agents creates a deep and engaging user experience that goes beyond simply owning a token and rewards active, performance-oriented engagement.
• Probability-based incentive system:The monthly prize draws are not just a marketing tool, but a mathematically verifiable incentive whose attractiveness is quantifiable and orders of magnitude superior to that of traditional lotteries.

This memorandum will explain in detail the underlying mechanics, tokenomics, and strategic market positioning of the BlockShark RTE project.

——————————————————————————–

2. Project mechanics and phase model

The strategic importance of the two-phase project structure cannot be overstated. This model is specifically designed to address the pervasive problem in the NFT market of price decline after the initial sale (mint). Instead of relying on short-term hype, the project establishes a mechanism that creates sustained, long-term demand in the secondary market, thus sustainably supporting the value of the underlying asset.

2.1 Phase I: Initial Launch and Community Building

In the first phase, the foundation for the ecosystem is laid. The primary goal is to build a committed initial user base. This is achieved through two complementary actions:

• Sale of 3,000 Access NFTsat a low price point to ensure wide distribution.
• Giveaway of 1,200 additional Access NFTsto participants who complete the first round of the AI-powered “Radical Transparency Experience”.

This combination ensures that a critical mass of 4,200 keepers is created, which fill the ecosystem with life from the very beginning and form the basis for the second, self-sustaining phase.

2.2 Phase II: The self-sustaining economy

After the initial lottery is completed, the core innovation of the project begins: aeconomic machine, which continuously drives the secondary market. Its functionality is as simple as it is ingenious:

1. The system uses blockchain data to identify whether a holder of the Access NFT is anew ownertrades (i.e., the NFT was acquired on the secondary market).
2. Each new owner receives a one-time authorization to go through the full “Radical Transparency Experience” with the AI ​​agents.
3. Qualification for the monthly prize draw is performance-based: Participants must correctly answer at least two out of four questions about the founder’s situation to receive a “ticket.” The incentive structure is progressive: Three correct answers double the chance of winning (two tickets), four correct answers triple it (three tickets).
4. Over a period of 20 months, 25 valuable “TimeLoop-25” lifetime access NFTs will be raffled off monthly.

This mechanism rewards active engagement and creates a permanent, rational incentive to acquire the RTE Access NFT on the secondary market. Access to the experience and the performance-based opportunity for a valuable profit are directly linked to purchasing on the secondary market, generating consistent demand.

This well-thought-out project mechanics forms the basis for the robust value streams defined by the project’s tokenomics.

——————————————————————————–

3. Tokenomics and Value Streams

A clearly defined and transparent tokenomics is crucial for the long-term profitability and stability of any Web3 project. The economic architecture of BlockShark RTE is geared towards two primary revenue streams and a strong incentive mechanism, which together form a sustainable value stream model.

Key data of the BlocksShark RTE Access NFT Collection

Key figure	specification
Total offer	4.200
For sale	3.000
For the prize draw (Phase I)	1.200
Mint price	0,004 ETH (ca. 10 €)
Royalty fee (secondary market)	50%
Royalty fee sharing	25% to the DAO Treasury, 25% to the founder

Revenue model

The project generates revenue from two primary sources:

1. Primary sales:The initial sale of the 3,000 NFTs at approximately €10 each generates a gross revenue of30.000 €This capital is used to cover initial costs, finance the founder, and fill the DAO treasury.
2. Secondary market royalties:The strategic decision to implement a prohibitive 50% royalty fee is a crucial lever that deliberately decouples the ecosystem from speculative trading. This aggressive fee structure is a calculated filtering mechanism. It deters short-term speculators and selects for a holding base that participates in the long-term success of the ecosystem and its experiential value – a critical factor for the stability of the floor price in Phase II.

Der “TimeLoop-25” Reward-Token

The “TimeLoop-25” NFT is the fuel for the Phase II economic engine. Its function is crucial for maintaining the secondary market cycle:

• Offer:Strictly limited to 500 pieces, which come from a strategic reserve.
• Distribution:Each month, 25 of these tokens will be raffled off over a period of 20 months to new secondary market buyers who have qualified through the Experience.
• Function:As a lifetime access token for future projects in the Blockshark ecosystem, it represents a highly attractive and valuable reward. It is the primary incentive motivating new participants to become active on the secondary market.

This economic structure not only creates value, but also a powerful and quantifiable marketing tool.

——————————————————————————–

4. Probability analysis and market positioning

The unique selling point of the BlockShark RTE project is not only narrative but also mathematically quantifiable. The statistical appeal of the monthly lottery represents an exceptionally effective tool for user acquisition and market positioning. The following table quantifies theminimum baseline probability of winningThis applies to a participant who qualifies with the lowest level (two correct answers). It is crucial to understand that dedicated participants can significantly increase their individual chances through better performance (up to three times their chances), which further enhances the appeal of the offer.

Comparison of monthly winning probabilities

Scenario (Participants)	Minimum probability of winning (RTE)	Comparison to the lottery jackpot (1:140 million)
100 new owners	25.0% (1 to 4)	about.35 million timesmore likely
1,000 new owners	2.5% (1 to 40)	about.3.5 million timesmore likely
10,000 new owners	0.25% (1 in 400)	about.350,000 timesmore likely

The marketing potential of this data-driven reality is enormous. It enables a clear and compelling message that directly targets a broad audience:

“Forget the lottery. With Blockshark RTE, you don’t have a 1 in 140 million chance. You have a real chance.”

This approach positions the project not as a purely speculative investment, but as an entertaining experience with a statistically significant chance of winning. This can appeal to a target audience that extends beyond traditional NFT investors and also attracts participants from the gaming and gambling sectors.

While the project’s strengths are compelling, a balanced consideration of the risks and the strategies for managing them is essential for a sound analysis.

——————————————————————————–

5. Risk analysis and mitigation

A thorough examination of potential challenges forms the basis of any sound investment decision. The project architecture transparently addresses the primary risks and presents specific, proactive risk mitigation strategies. This demonstrates a high degree of foresight and operational planning.

1. Risk: Enforcement of the 50% royalty fee
   • Risk:An industry-wide problem is that large NFT marketplaces like OpenSea and Blur have made royalty payments optional, which can undermine the revenue stream from secondary market sales.
   • Mitigation strategy:The project addresses this risk with a three-pronged approach. First, by using a smart contract (e.g., based on the ERC-721C standard) that enforces royalties at a technical level. Second, by operating its own controlled marketplace.store.blockshark.xyzThirdly, through the use of platforms such as NFTs2Me, which enable consistent fee enforcement.
2. Risk: Tax complexity (small business regulation)
   • Risk:With expected revenues of €30,000 from primary sales, the founder exceeds the revenue threshold for the small business regulation in Germany and immediately becomes liable for sales tax.
   • Mitigation strategy:The project proactively plans to create a tax reserve amounting to 40-50% of all revenues. This measure ensures the necessary liquidity to meet all tax obligations (sales and income tax) on time.
3. Risk: High transaction costs (gas fees)
   • Risk:Selling a 10-euro NFT on the Ethereum mainnet would not be economically viable due to the high and volatile transaction fees (gas fees), as the costs could exceed the value of the asset.
   • Mitigation strategy:There is a clear recommendation and plan to implement the project on a cost-effective and scalable Layer 2 network such asPolygon or Baseto start. Transaction costs there are in the cent range, which makes the business model profitable even with low-priced assets.

Proactively identifying and managing these key risks strengthens confidence in the long-term feasibility and success of the project.

——————————————————————————–

6. Investment Summary and Outlook

The Blockshark RTE project is more than just another NFT collection; it’s a sophisticated, closed-loop economic system driven by a unique narrative and compelling, data-driven incentives. It specifically addresses the weaknesses of traditional NFT models by generating sustainable demand and ensuring long-term value for its participants. The combination of gamified engagement, demonstrably high profit potential, and a robust economic structure creates a compelling investment profile.

The primary reasons for investment can be summarized as follows:

• Innovative economic model:The self-sustaining nature of the Phase II mechanism is designed to generate a continuous stream of value and counteract the typical price decline after the mint.
• Quantifiable incentive:Statistically, the reward system is orders of magnitude more attractive than traditional lotteries, which represents a strong and far-reaching marketing argument.
• Robust risk reduction:The key technical and financial risks, such as the enforcement of royalties and tax liabilities, were identified and addressed with clear, actionable solutions.
• Scalable engagement:The model has the potential for long-term and organic community growth, driven by the continuous cycle of new participants entering the ecosystem through the secondary market.

Due to these factors, the Blockshark RTE project has the potential not only to establish itself as a successful individual project, but also to become a much-admired showcase model for sustainable NFT ecosystems and could establish itself as a category-defining asset in the emerging field of narrative-driven economies.