Strategy paper: Risk analysis and optimization plan for the BlockShark RTE NFT project

1. Introduction: Strategic realignment to ensure project success

The Blockshark RTE project (“Radical Transparency Experience”) aims to establish a sustainable economic model through the gamification of radical transparency. However, the long-term viability of this ambitious project is at risk, as its innovative economic model rests on a critical technical assumption. Failure of this assumption would not only eliminate the primary source of revenue but also trigger a cascade of incalculable financial and tax consequences for the founder.

This document presents a detailed analysis of the identified weaknesses and outlines a concrete, actionable plan for optimizing and securing the project. The measures outlined here are intended to ensure that the core objectives—the founder’s financial independence and sustainable funding for BlockShark DAO—are achieved. The following analysis begins with the heart of the project: the underlying business model.

2. Analysis of the Economic Model: “Phase II” as a Value Driver

The strategic core of the project is “Phase II,” which aims to create a permanent purchase incentive and sustain economic activity beyond the initial sale (Mint). The model relies on two key revenue streams, the mechanisms and projections of which are summarized in the following table.

Source of income	Projection & Mechanism
Primary sale (Mint)	€30,000 in revenue: The sale of 3,000 NFTs at a price of 0.004 ETH each (approx. €10) generates the initial starting capital.
Secondary market (license fees)	€100,000 in revenue (projected): A 50% royalty fee is charged on each resale. This fee is distributed equally (25% each) to the founder and the DAO Treasury. This projection is based on 10,000 transactions.

To ensure that initial buyers do not incur a loss upon resale, the selling price must be at least 0.008 ETH (approx. €20) due to the 50% fee. This price serves as a psychological lower limit for the secondary market.

The main incentive for trading on the secondary market is the monthly lottery of 25 valuable “TimeLoop-25” NFTs. These are raffled among all new holders who have acquired the NFT and successfully completed the associated AI game. This mechanism is designed to generate continuous demand.

However, the entire model rests on critical assumptions, particularly regarding the technical enforceability of the license fees and the correct tax treatment of the revenue. These assumptions require closer examination.

3. Critical risk analysis: Identified weaknesses in the current plan

The strategic importance of the following risk analysis cannot be overstated. The identified weaknesses jeopardize the feasibility of the entire financial plan and therefore require immediate and targeted countermeasures.

3.1. Technical risk: Enforceability of the 50% license fee

The biggest weakness of the financial model lies in the assumption that a 50% license fee is automatically enforced on standard NFT marketplaces like OpenSea or Blur. In reality, most of these platforms no longer enforce the fees; buyers can often reduce them to 0% or bypass them entirely.

Consequence: Without a technical solution, the secondary market’s most important source of revenue will collapse. The entire plan for financial independence through ongoing license income will then be rendered obsolete.

3.2. Financial Risk: The Small Business Tax Trap

The planned revenue of €30,000 from primary sales poses a significant tax risk. In Germany, the revenue threshold for the small business regulation is €22,000. With the Mint, this threshold will be exceeded immediately.

Immediate chain of consequences:

1. Loss of status: The turnover of €30,000 exceeds the limit of €22,000, which means that the small business status is immediately and retroactively revoked for the current financial year.
2. VAT liability: A value-added tax (VAT) of 19% (approx. €4,800) is due on the entire gross revenue and must be paid to the tax office. This immediately reduces the available capital.
3. Income tax burden: The remaining profit is subject to full income tax at the founder’s personal tax rate.

Warning: Paying off private debts with gross income does not eliminate tax debts to the state. This poses the acute risk of simply replacing old liabilities with new, state-imposed tax debts.

3.3. Operational Risk: Identifying New NFT Holders

The technical implementation of “Phase II” presents an operational challenge. The system must reliably and securely detect whether a wallet is holding an NFT for the first time in order to unlock access to the AI ​​experience exclusively for new buyers. This requires a combination of a database solution (e.g.,Wallet_Address | Has_Played_Current_Month) and a blockchain query to determine the ownership period (Hold_Timeto verify. Inadequate implementation could devalue the main incentive of the secondary market.

However, concrete solutions already exist for all identified risks, which must be strategically implemented in the following plan.

4. Strategic Optimization Plan: Actionable Corrective Actions

The following strategy is designed to transform the previously identified risks into strengths and to reliably achieve the project goals – financial independence and sustainable growth of the DAO.

4.1. Securing license fees: Building a closed, rules-based ecosystem

To secure the critical revenue stream of license fees, the project must create a controlled, closed ecosystem. This is not merely a technical adjustment, but a strategic decision to control the project’s economics. The necessary tools have already been identified:

• NFTs2Me: The platform offers a feature called “Creator Fee Enforcement.” This is embedded in the smart contract and blocks transactions on marketplaces that do not respect the set fees. It acts as a technical gatekeeper for the wider market.
• Own marketplace (store.blockshark.xyz): This will be the central, controlled marketplace and curated “home base” for the community. Here, the project can dictate the rules and guarantee the enforcement of fees.

It is recommended that this technical safeguard be accompanied by a narrative adjustment. The 50% fee should not be presented as a “fee,” but rather as “Community Contribution” This will be communicated. This framing clarifies that the funds will flow directly into the Blockshark DAO and the continuation of the transparency experiment, which can significantly increase acceptance within the community.

4.2. Financial and tax discipline: A two-account strategy

To avoid the tax trap and ensure financial discipline, a clear two-stage financial plan for primary sales revenue is essential:

1. Step 1: Create a tax reserve. Immediately upon receipt of the payment, 40-50% of the total amount (approx. €15,000) must be transferred to a separate account. This account is reserved exclusively for paying the applicable sales and income tax to the tax office.
2. Step 2: Prioritized debt repayment. The remaining capital should first be used to settle any enforceable debts (e.g., claims from bailiffs). This reduces the greatest financial and psychological pressure and creates a stable foundation for the future.

4.3. Marketing focus and technical safeguarding of the launch

For a successful launch, marketing and technical platform must be optimally aligned:

1. Marketing Lever: The comparison “Chance of winning vs. lottery”This must be used extensively in all marketing materials. The analysis shows that even in a hype scenario with 10,000 monthly participants, the odds of winning are still around 350,000 times higher than a lottery jackpot. During periods of lower traffic, this factor can increase to over 35 million. This enormous discrepancy must be the central pillar of marketing communication.
2. Technical platform: It is strongly recommended to run the Mint on a low-cost blockchain such as Polygon or Base To carry out the transaction, the transaction fees (“gas fees”) on the Ethereum mainnet would far exceed the value of a €10 NFT, making participation unprofitable for the target group. A low-cost chain is crucial for the success of the primary sale.

5. Summary of the adapted strategy

Implementing the following four core measures is crucial to ensure that the project “more than pays off” and achieves its goals.

1. Guarantee of license revenues: Securing the 50% fee through smart contract hardening (e.g. via NFTs2Me) and focusing trading on the company’s own marketplace.
2. Financial security: Immediate creation of a tax reserve amounting to 50% of the revenue from primary sales in order to proactively manage tax liabilities.
3. Marketing focus: Aggressive communication of the “chance of winning vs. lottery” comparison as a central sales argument to increase attractiveness.
4. Economic launch: Implementing the Mint on a low-cost chain (e.g., Polygon) to minimize transaction fees for users and keep the purchase threshold low.

The consistent implementation of this adapted strategy lays the foundation for the economic success of the project.

6. Conclusion: Potential and critical success factors

The core concept of the Blockshark RTE project – the gamification of radical transparency combined with a highly attractive chance to win – is innovative and has considerable potential to attract a dedicated community. However, the idea alone is no guarantee of success.

Economic success therefore depends not only on the innovative idea itself, but also on the disciplined implementation of a robust technical and financial architecture. The technical enforcement of license revenues and uncompromising tax discipline are not merely optimizations, but the inviolable foundation for leading this experiment out of the debt crisis and into a sustainable future.