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James Barfordamanda Wilson

sara CzarnieCkiJoshua hughes

weareblacksheep

hello@weareblacksheep.org

weareblacksheep.org

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aBstraCt

Blacksheep is a regenerative resource management company that is directly confronting environmental destruction through creative business solutions. We connect small farmers and landowners in economically and environmentally exhausted areas with investors from all over the world, creating cooperatives that regenerate degraded landscapes and revitalize local economies.

Blacksheep cooperatives reforest land with highly productive food forests full of selectively-harvested timber species alongside short-term, valuable crops like turmeric and cacao. We then find, create and expand local and global markets for these products, incentivising responsible cultivation and management of resources in our area. Blacksheep currently manages three land-based projects in Costa Rica

totalling 188 acres valued at $2 million. Now we are expanding access to our investments by bringing the Blacksheep model to the blockchain.

Blacksheep was founded upon the idea that the survival of the world’s forests depends on a conservation strategy that includes a viable economic plan placing proper value on natural resources and the lives of nearby people. We understand that in order for our business to truly be considered “regenerative,” ownership must be accessible and largely decentralized. This has inspired us to utilize the smart contract technology and applications currently in development on the Ethereum blockchain to create an open-source platform that will allow us to expand accessibility for potential investment partnerships globally.

We seek partners who want to rethink the prevailing investment model. Anthropomorphic climate change presents humankind with a tremendous challenge, but also an opportunity. Divesting from extraction is a necessary first step in reversing our society’s disastrous environmental impact. If we instead choose to employ our resources in ways that regenerate destroyed ecosystems and support self-determined futures for underserved people, we can find right livelihood for ourselves along the way. We have the leverage to stop the pillaging of our planet and create a positive global trajectory by placing our energy and hard-earned money into an investment model that is actively repairing our world.

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aBout BlaCksheep

Blacksheep is a regenerative resource management and consulting cooperative that empowers local and international partners to take direct action against land base destruction by investing in natural capital.

founded:2015

land managed: 188 acres

financial capital raised: $520k

assets managed: $2m

team: 8

headquartered: lanas, Costa rica

industry proBlems

» EXTRACTIVE ENVIRONMENTAL PRACTICE(soil depletion; environmental degradation)

» Conventional farming and forestry practices are responsible for the stripping of land and soil, leaving behind damaged / dead land.

» INEffICIENT DONATION MODEL

» In 2016, the planet lost 188 acres of forest per minute (thinkprogress.org). Protection via donated funds is not working. Conventionally protected land doesn’t allow economic access.

» EXhAusTIVE ECONOMIC PRACTICE

» Large swaths of land are purchased by corporations that concentrate ownership. Landowners turn into low wage employees, whose jobs quickly disappear when the land becomes unproductive.

» Natural capital is the asset class made up of the natural world. The prevailing economic system prices components of natural capital for extracted resources and for the production of man-made products. however, due to the economic system having pricing mechanisms for only these resource components, natural capital itself is an externality that is significantly misused and undervalued.

our solutions

We are bridging the gap between agriculture, forestry and environmental protection through commerce.

agroforestry and permaculture practices

» Employed practices promote the regeneration and protection of precious environmental resources while diversifying ownership and providing right-livelihood

blockchain and smart contract tech

» Asset-backed tokens that open up liquidity and global investment opportunities

» sustainable supply chain management

moBilization

total fundraise

$5-10mFunds for lab / warehouse / office, marketing, product distribution and land projects acquisition

la mina (land project)

$1.8m production equipment

$1m

management / development (8 full time for 5 years)

$2mwarehouse laboratory

$1mlegal & marketing (5 years)

$250k

roi

Blacksheep will distribute 33% of profits each year to shareholders.

Profits are realized via consulting and management services, dividends from land projects that Blacksheep owns and value-added product distribution.

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taBle of Contents

INTRODuCTION1.1 challenges1.2 solutions

BLACkshEEP DECENTRALIzED MODEL2.1 DCO 2.2 layers2.3 blacksheep applications2.4 proof of provenance2.5 key advantages

ThE TOkEN3.1 token model3.2 smart contract technology3.3 token offering3.4 token budget allocation

LEADERshIP4.1 team4.2 advisors and partners

CONCLusIONROADMAPACkNOWLEDgMENTsLEgALDIsCLAIMERsOuRCE MATERIAL

55799

10111213141414151618181919 20 21 21 21 22

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introduCtion 1.1 challenges

We are facing the blowback of unfettered capitalism on a global level. The current global economic system subsidizes extractive industries while simultaneously ignoring negative impacts such as deforestation, climate change, pollution, resource depletion, mass extinction, slavery, poverty and illness. Investing in the traditional banking system generates profit at the expense of the poor and the health of our planet, further monopolizing wealth for a small group of insiders.1 The destruction and suffering caused by extractive industries has resulted in a dramatically unbalanced global society and an endangered planet.

Our economic system prices components of natural capital for extracted resources and for the production of man-made products, but not what is sacrificed in their production.2 When corporations - and the megabanks that invest in them - are not made to pay for the true cost of their actions, someone else has to. This subsidy is often in the form of taxes, but other forms of subsidy (generational poverty from loss of opportunity, systemic oppression, ecosystem collapse and illness) are difficult to quantify and

often unconsidered. What is left unpaid at the register is paid for by current and future generations in the form of taxes, declining economies, environmental destruction, disease and climate change.3 The modern financial market is completely out of touch with reality or any sense of ethical accountability.

The prevailing economic system creates a forced trade-off between environmental, social, and public health for economic gains, with the inherent structure of the system providing an incentive to destroy the environment and enslave people through poverty wages and debt. Coupled with global population increases and outdated, extractive monoculture farming methods, natural capital is rapidly diminishing. It is currently consumed at a rate of 1.7 times the earth’s replacement capacity.4 If we keep drawing down stocks of natural capital without allowing nature to recover, we will create local, regional and global ecosystem collapse.5 still, the modern industrial complex pillages the earth’s resources and communities as if there were, literally, no tomorrow.

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DEfOREsTATION AND NEOCOLONIALIsM

Puriscal, the region of Costa Rica in which Blacksheep was founded, is a good case study of the impact that extractive industries have on small communities and the ecosystems they live in. Today, the mountainous Puriscal area is one of the most deforested in Costa Rica.6 Tens of thousands of acres of primary growth rainforest have been sacrificed in the area over the past 70 years in the pursuit of short-term financial gain.

When forests are clear cut, the protective overhead canopy that normally shelters soil from the elements is removed, destroying the naturally occurring nutrient cycling system, disrupting the hydrologic cycle, and eventually giving way to erosion and catastrophic landslides. Once this process has taken place, the soil becomes unsuitable for agriculture. Many farmers try to revive the exhausted soil using petroleum-based fertilizers and fight blights brought on by monoculture practices using toxic herbicides and fungicides. These chemicals inevitably end up in rivers, streams and drinking water, poisoning wildlife and people. Even worse, the people who are hired to apply these

chemicals often do not have access to protective clothing, exposing whole communities to higher rates of organ failure, birth defects and cancer.7

Reforesting these stripped pieces of land is the only way to prevent further degradation from erosion. however, “reforestation” as defined by many governments and worldwide organizations often consists of planting one fast-growing, non-native tree species (such as african palm), which is slashed and burned after the trees have exhausted their production. This attempt at reforestation temporarily protects soil from heavy rain and sun, but it does not support biodiversity. On the contrary, this practice provides little food for wildlife and can acidify and degrade the soil even more, making it harder for other trees to grow and impossible for a healthy, true forest system to develop.

The prevailing global economic and agricultural system is cannibalizing campesinos and other vulnerable groups throughout Central and south America. People are fleeing the countryside for cities all over the global south,8 but those who stay often find themselves working for slave wages and spraying

poisonous agrochemicals, inadvertently destroying their home for the wealthy who live far away from the woes perpetuated in the campo. Even those who do own their own land find themselves with very few economic options in a heavily subsidized global market. The ultimate result is a negative feedback loop in which people are forced to poison their homes and families in order to survive.

ThE DARk sIDE Of CONsERVATION

Well-meaning foreigners are more than willing to donate thousands of dollars for the founding of national parks and wildlife reserves in conjunction with NgOs and conservation agencies. unfortunately, the inherent structure of many of these organizations addresses symptoms of environmental destruction (species extinction, habitat destruction) as opposed to causes (extractive industry). At their worst, NgOs are just as guilty of swindling local populations out of access to their land and resources as Big Business.

The top-down style of management employed by these organizations often alienates local people, furthering what

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journalists and scholars have called a “wildlife apartheid.”9 Backed by empty promises, foreign enterprises are granted swaths of land to commercially exploit while tribal peoples are displaced and chastised. In this system, animal’s lives are valued over the lives of local people because they bring economic returns through tourism and sport hunting, while indigenous populations are shunted aside as an afterthought, or even villainized and prosecuted as poachers on their own ancestral lands.10

Conservation efforts that alienate locals, whether an ernest mistake or a seditious plot, are ultimately ineffective at protecting the environment. Restricting local people’s access to their own resources, whether meant as a way to protect species or not, exacerbates the problem because it creates and perpetuates poverty. Local people become trapped in a negative loop from which they cannot escape - ultimately forcing them to mirror the worst habits of their foreign counterparts.

1.2 solutions

unlike traditional investment systems, the Blacksheep model does not invest in the destruction

of land, the extraction of resources or the enslavement of people. Our design decisions are shaped by a whole-systems analysis of economic, ecological and social outcomes, largely informed by agroecology and permaculture philosophy.

The earth and its natural resources are ultimately the source of all value. As such, the inherent value of these resources is unaffected by the volatility of global markets and politics. The intrinsic value possessed by natural capital, specifically renewable natural capital, makes it a logical choice for investment. With the prevailing new class of security tokens backed by real-world assets, sovereignty can be reclaimed by small farming communities. Realigning currency with real-world assets through the sustainable capital creation employed in regenerative agriculture will be a useful tool that threatened communities can use to free themselves from the wayward global financial sector and claim self-determined futures.

Divesting from extractive, wealth-centralizing industries and investing in regenerative, decentralized models is a direct way to insure generational stability, the health of the

step 1: fIND A PROBLEM » Look to the waste

stream for issues that are in need of attention.

step 2: DEVIsE A PLAN » Create a profitable

business plan to incentivize appropriate utilization of the wasted resource while impacting surrounding communities positively.

step 3: gAThER PARTNERs

» strategically select partners based on the capital they can contribute including land, skillsets and finances.

step 4: IMPLEMENT ThE PLAN » Collaborate with

partners to roll out the plan and see it through to completion. » Engage surrounding

communities in equity management.

step 5: PAyOuT. » Reap allocated benefits

with shareholders and the local community. » see that the orginal

problem in question has a real solution.

environment and a retention of wealth on a local level. Blacksheep envisions that anyone, anywhere in the world can participate in the value creation employed in our efforts to regenerate ecosystems and other sacrifice zones. As the model develops, Blacksheep token holders will be able to assist in governing the network, have access to project funding pools, be able to participate in projects and receive token returns for their contribution. In a new and constantly developing regulatory environment, Blacksheep is designing an adaptable structure to set the standard for full legal compliance.

ON ThE gROuND

Blacksheep plants food forests on deforested and barren land, regenerating topsoil and bringing land gently into production over a period of 30-some years with the eventual goal of leaving behind a protected, largely untouched jungle. Our business model and utilization of agroforestry encourages the growth and maintenance of biodiverse systems while creating a livelihood for investors, employees and worker-owners from the actual process of reforestation.

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Blacksheep’s guiding philosophy places human beings within ecosystems and recognizes our potential as a species to gently enhance natural systems in favor of balance and biodiversity. Whether we recognize it or not, we are always participating in and affecting our natural community. Therefore, conservation must be understood not as a “status that is achieved but a principle that governs continuous, living processes.”11

This understanding of conservation as governing principle leads us to consider the role and importance of human communities within ecosystems. The health of ecosystems and the balanced economic health of nearby human communities are interdependent. When people have a say in what happens to their environment, when they are vested in it, accountable to it and dependent upon on its health for their own survival, they choose to nurture and protect it.12

This is why Blacksheep was designed with a cooperative business strategy built around the direct involvement and ownership by local people. Blacksheep creates living-wage jobs with the option for paid work-trade share ownership; a simple strategy

that ensures wealth is retained on a local level.

By expanding into the blockchain, Blacksheep will also give its investors - people of varying economic statuses and nationalities - the ability to divest from destructive, extractive industries and systems like Big Banks, and instead invest in the regeneration of the rainforest and the sovereignty of vulnerable communities. By tethering fairly-shared financial returns to the regeneration of the forest, our model ensures that both natural communities and local economies thrive.

We can choose to curb environmental destruction, alleviate strife in struggling communities and create capital by leveraging technology and good systems design to regenerate and protect the earth. By recognizing the root causes of these issues and addressing them directly, we can begin to solve these challenges for ourselves and for generations to come.

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BlaCksheep deCentralized model 2.1 DCO

Blacksheep will use blockchain technology to create secure digital certificates called security tokens that are linked to our regenerative land projects and businesses. As projects are listed on the platform, a certain amount of security tokens will be created that members can invest in, owning a percentage of the project.

As the platform develops, Blacksheep is proposing the use of a Distributed Collaborative Organization (DCO) network model outlined in the Network Whitepaper.13 It allows members the benefits of network governance to establish, measure and grow several projects simultaneously within a collaborative environment. key components of the network stack are network democracy, trust currency, funding pools and tokenized real world assets.

TRusT CuRRENCy

LANA will be the initial token offered on the Ethereum blockchain. Members can then allocate a portion of their LANA to security tokens in a specific regenerative project and receive

returns from project maturation and contribution. The power of token liquidity gives members a sense of emotional connection and peer-to-peer ownership of the result as well as the liquidity to directly use and trade their tokens for other cryptocurrencies.

LANA is the token that fuels the various necessary functions on the platform. using smart contract technology, LANA will act as the transparent accounting tool to track activities and business operations. As the platform develops, LANA will also be used as a stake-weighted governance and income generating tool allowing members to contribute

to the realisation of regenerative projects. There will be a fixed supply of LANA tokens, as the economic activity on the platform expands, so will demand for LANA.

Blacksheep anticipates using Colony application protocols to achieve these collaborative features. Colony is a promising Ethereum decentralised application (Dapp) that brings meritocracy to the blockchain. This is the ideal structure for speed, scalability and the appreciation of individual leadership and contribution.

NETWORk DEMOCRACy & fuNDINg POOLs

The network democracy feature is the collaborative user-interface layer of the platform. using stake weighted governance systems via smart contracts, a member’s participation is proportional to the amount of tokens they have staked in a project. Traditionally this is done with stocks or shares, within the platform this is done using LANA.14 stake weighted features allow for flexible governance and incentivise various forms of contribution. Voting features will be implemented so that members can participate in decision making processes or choose to assign their vote to another party whilst still maintaining control of their capital.

funding pools will be the sub-organizations established for the specifically listed projects to govern, monitor and allocate funds within. It is similar to an investment fund that seeks to yield profits and ensure the success of the regenerative project.

Blacksheep plans to use Aragon’s governance protocols to manage this. Aragon is a Dapp structured on the Ethereum network as an operating system for decentralized autonomous organizations. Aragon facilitates the easy management

memBer Container

trust CurrenCy

smart ContraCt CapaBle BloCkChain

tokenized assets

tokenized assets

tokenized assets

funding poolsfunding poolsfunding pools

netWork demoCraCynetWork demoCraCynetWork demoCraCy

governanCe(network democracy)

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of basic components of an organization such as voting-share distribution, role assignments, accounting, fundraising, and more.

TOkENIzED AssET

The tokenized asset will be the digital representation of ownership in specific projects. When a project is listed on the platform, an adequate amount of security tokens will be created to fund it. Members can allocate a portion of their LANA and will receive an equivalent amount of security tokens in the project. Land is the ultimate “real” asset as it has stable and generally appreciating value, lends itself well to subdivision, tokenization and will serve as a backing for the value of the network as a whole.15

In Blacksheep’s case, these would be resource-backed assets, as Blacksheep’s real estate assets will have added layers of value from the regeneration and conservation of natural capital whilst simultaneously yielding commodity production in a sustainable way. Blacksheep’s intended long term applications for these security tokens tied to the conservation of natural capital is discussed in section 2.3. Realised returns and the appreciation of

owned assets will be funneled back into the network using the governing smart contracts of the platform to achieve income and growth of the network.

for projects in other countries. This layer is the on-the-ground execution of projects. Members can apply to work with the core team of experts to learn regenerative farming and business practices as opportunities become available.

allocation of LANA into various asset-backed tokens. Evolving blockchain entity structures (security tokens) will be established to directly tie to traditional legal structures that represent ownership in the project. PROTOCOL LAyER

The protocol layer is made up of smart contracts that determine the bylaws and governance of the platform. This includes investment management, legal frameworks, reputational systems, collaborative governance protocols and processes for security & data transparency.

API LAyER

The API layer is how members interact with the platform on Blacksheep’s website. It will consist of a user friendly interface, members will be able to transfer fiat into LANA, allocate tokens to projects, view the performance of projects as well as a proposal pipeline for future funding opportunities. Project leaders and investors can come together in creative ways to track, measure, grow the various digital requirements of the projects.

2.2 layers

PhysICAL LAyER

The physical layer is the land and natural capital produced. It is owned by a company entity structure within Costa Rica and/or future entity structures

BLOCkChAIN LAyER

The blockchain layer connects the physical layer to the digital ecosystem. It acts as a secure, transparent accounting ledger of ownership. It holds a record of transactions representing

physiCal

BloCkChain

protoCol

api

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2.3 blacksheep applications Blacksheep has developed a model for successful regenerative resource management that we intend to scale using blockchain technology with the following

The following section describes the potential project pipeline of community driven funding pools.

We have identified various asset classes for short,

characteristics:

» Regenerative in nature » Based in permaculture and

agroecology philosophy

» supportive of local economic sovereignty

» Long-term, stable, tangible returns

» Ability for investors to start with smaller amounts for investment

» Ability to scale operations globally

The vision of this distributed technology framework allows for partners to be situated globally with liquid asset-backed tokens being applied and scaled to numerous projects. One just has to look to the waste stream and see opportunities for regenerative application.

Long-term land banking & carbon sequestration Once the allocated amount of trees are felled and short-term crops are wound down, the land is left alone as a regenerated land bank for carbon sequestration. Blacksheep will be working with carbon offset companies in the blockchain space to establish this market for continued, conservative long-term revenue streams.

medium and long-term ROI.

Short-term cash crops & waste stream utilisation Cacao, turmeric and superfoods such as sacha inchi are ideal for tropical climates. Returns are realized by year three onwards after planting. Once the platform is demonstrated as viable and the network is functioning, project proposals for waste stream utilisation in various markets can be presented to the community platform for fundraising opportunities. At this stage the platform will act as a decentralized investment fund.

Medium-term tree trusts & natural resource-backed currencies Natural hardwood species will be grown for building and furniture markets. Trees at different stages of development are harvested between years 5-20. This is a longer term funding pool for stable wealth creation with steady gradual appreciation of asset-backed tokens directly linked to the growth and health of trees until felled and ROI is realized.

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Blacksheep is developing two new projects:

» A processing plant that will allow us to intake raw material from farms

and output products for the market under one roof

» A land project situated on a 235 acre plot specifically for sustainable long-term lumber production and

carbon sequestration with local hardwood species ready for harvest within three years

2.4 proof of provenance

Each asset class demands specialised management and reporting procedures that need to be implemented by smart contracts. Our team of experts in permaculture and agtech will be developing a set of systems for the automated and objective determination of assets for platform members.16

The following section outlines proof-of-provenance procedures and blockchain applications intended for use within its operations.

gEOTAggINg

Each land project will be georeferenced using a certified topography software. Coordinates can be compared with those recorded in the title documents of the purchases of land and located accurately using google Earth or google Maps, checking and verifying the existence and advancement of crop growth.

AuDIOVIsuAL

Photographic and video recording of each of the activities related to cultivation of land projects: Employing drones, ground based robotic solutions, hardware and software solutions for online broadcasting.

DOCuMENT suPPORT

Registration of official documentation generated during the funding and development of the project will be supported by the respective notarization and relevant entities and stored in the chain of blocks. Quarterly reports correlating data will keep members updated on projects.

ACCOuNTINg

Blacksheep plans to develop a transparent blockchain based triple-entry accounting system using dapps currently in development. This data can be included in the quarterly reports for consistent transparency.

PROVENANCE AND suPPLy ChAIN MANAgEMENT

Blacksheep intends to partner with blockchain applications for provenance and supply chain management to deliver transparent and trackable systems. Partnerships within the carbon offset industries, including local government organizations, will bring extra levels of authenticity to proof-of-provenance procedures as well as long- term revenue streams.

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2.5 key advantagesLIQuIDITy

Land, although traditionally a steady appreciating asset, is relatively illiquid. Blockchain technology and tokenization is changing this. People are now able to promptly transfer funds using cryptocurrency and have the ability to enter and exit land ownership using these digital ledgers. Blacksheep aims to do this with degraded land globally, starting in Costa Rica.

gLOBAL REACh

It has been challenging for Blacksheep partners abroad wanting to participate in these projects to smoothly transact and send funds. With distributed ledger technology, anyone in the world will be able to visit the Blacksheep platform and participate with any amount of funds they wish. This in turn opens up more investment for regenerative projects and the ability for retail investors to direct their funds into impactful causes that see returns.

REgENERATIVE sWARMs

The true power of this technology is the concept of swarms. Establishing self-governing protocols and foundational elements within the platform that incentivise meritocratic, passionate swarms of people globally to combine efforts and steward regenerative projects to fruition. This is a powerful instrument for building global communities to take action toward a carbon drawdown economy.

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the token

The token distributed during the initial launch known as LANA will be a ERC 20 standard token on the Ethereum platform. The ERC 827 & ERC 884 are also being considered as the standards develops.

3.1 token model

As discussed, the Blacksheep token model will be two-tiered.

3.2 smart contract technology

smart contract technology will be the core engine of the platform facilitating transference of value, data, multi-layered agreements and platform governance structures.

The creation of LANA will be the first step. LANA will be issued on the Ethereum blockchain. smart contracts will be written in solidity.

The token LANA will have the following functions:

» Membership access to network

» gas payment for the network

» stake allocation into security tokens of regenerative projects

» Voting mechanism

» Payment for contribution

smart contract protocols will be implemented for the following functions:

» Identity and reputation of the user

» Token creation and exchange between the platform and crypto markets

» The design of asset backed tokens that are tethered to regenerative projects

» governance bylaws of the platform and asset-backed funding pools

crypto/fiat

seCurities token

inComing memBers

asset Company

$ $

$

The first, LANA token, will be a security token representing equity in a usA LLC. The approaching security Token Offering (sTO) trend in the blockchain space has brought with it new opportunities for fractional ownership in companies and capital raising abilities which we are exploring.

The second tier will be internal asset-backed tokens giving the ability for members to contribute an allocation of their LANA to projects on the platform they wish to be a part of. These sub-tokens will be customised for each project allowing members to understand what they are vested in. This is achieved through internal smart contract technology executed when a member allocates a portion of their LANA to a regenerative project. Bylaws stipulating lock up periods, liquidity and vesting periods will be uniquely dictated by each project on the network. These sub-funds within the funding pools will have their own governance, management and reporting teams.

» Distribution of realized returns from regenerative projects back into the network

for example, the platform fully realized could flow as follows:

» Member registers with the network and purchases LANA

» Enters the ‘Invest’ section of the dashboard

to view current regenerative projects open for contribution

» Member decides on a project that inspires and suits their investment goals, sends a portion of their LANA to the smart contract that represents their stake in the project.

» key decisions within the asset backed funding pool regarding project leadership, fund distribution and project milestones will be shaped and governed over time by the members within the funding pool.

asset CompanyseCurities

token

governanCe

governanCe

land proJeCt

land proJeCt

$

$

$

$

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» As projects develop specific digital and on-the-ground tasks will be required and posted for members to contribute and earn LANA. Anything from design, skilled labor, marketing, software maintenance to data analysis will be available to bring the project to maturation.

» As project matures and harvests are realized, profits in LANA are distributed and airdropped back into members wallets.

» security tokens can be unlocked and sold to incoming members at predetermined maturation points

3.3 token offering

The economic logic outlined here is a minimum viable logic for kickstarting Blacksheep’s proposed platform. We anticipate the Blacksheep community, via its governance procedures, will create and incorporate many additions and alterations in the years to come. The Blacksheep genesis contract will be minting a total of 100,000,000 LANA Tokens.

The Blacksheep genesis contract will be allocating the minted LANA tokens as follows:

» 33,000,000 = Distributed via Private Token sale

» 33,000,000 = Reserved for reward pool

» 33,000,000 = Distributed to Team, Partners, Advisors

We wish to keep the token offering as simplistic as possible. We will be implementing post sale lock up periods of varying time spans and working closely with security token exchanges in the space to ensure regulatory compliance, prevent speculation and dumping of tokens.

Due to the nature of the DCO structure, after enough funds have been raised for operational budgets and platform development, additional funds can be deployed to funding pool projects, preventing bloated amounts of funds going to founders that could deter development. To fund future expansion more tokens can be released into the ecosystem from the remaining pools of the initial 100 million created.

PRICINg

Instrument: LANA

Hard cap: $10,000,000 usD. Soft cap: $4,000,000 usD.

Total supply: 100 million tokens will be created. 33 million will be released during private sale. Tokens can be bought using ETh.

Supply schedule: The pre-allocations to Blacksheep team members and advisors will be unlocked and distributed at 5% percent per quarter, over 5 years.

sALE PhAsEs

Phase 1: Private sale » May - October (Large contribution private sale period)

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Phase 2: Token Liquidity » Drip liquidity and security token exchange release starts after lock-up period

Tokens will be delivered to participants after token sale end date. Blacksheep is committed to a transparent token sale process and will notify the public of the total amount of LANA tokens in circulation after the completion of the token sale.

3.4 token budget allocation

It is important the Blacksheep community understands what LANA funds will be used for following the Token generation Event. The following section and pie chart illustrates this.

Processing Plant » $1M usD

In addition to focusing on regenerative lIn addition to focusing on regenerative land projects, Blacksheep will be building a processing plant in san Jose, Costa Rica for the production and distribution of superfood products to local and global markets. following numerous property tours Blacksheep already has a short list of suitable warehouses that meet the following criteria: » 2000m2 in Coyol free Trade zone with

industrial water treatment systems, three-phase electrical service and fiber optic internet connection » Room for sub-leasing and future expansion

» Prime location that has convenient access

to the Port of Caldera, highway 27,

Juan santamaria International Airport and the future international airport in Orotina

» Property value in this area has been increasing and this trend is likely to continue

Production Equipment » $1M usD

Blacksheep’s aim is to capture as much of the added value within the distribution and supply chain as possible and funnel this back to local communities and the network. Turning raw materials including turmeric, sacha inchi, and cacao into edible products is a detailed one requiring multiple processes and various pieces of equipment. Anticipated needs are as follows: » Alcohol percolation and supercritical fluid

extraction equipment

» sacha Inchi production line comprised of dehusking machine, sheller, roaster, hydraulic oil press, particulate filter, decanter

» Pallet wrapping machine and pallet jack

» Bottling and packaging equipment

» freeze dryer

» Distiller

» grinder

» Refrigeration unit

» Box trucks

Management and Development 30%

La Mina Project 27%

Processing Plant 15%

Production Equipment 15%

IT Development 7%

Sales and Account Management 4%

Legal 3%

» scales

» Three-phase air compressor

» storage racks

» Power tools

» MIg welder

» Roaster /dehydrator

» Offices

» Mechanical engineer and bioxtractos design/labor

Management and Development » $2M usD

This encompasses the management and development of the on-the-ground execution of regenerative land projects and production

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centers. It ensures a baseline budget to contract up to 8 full-time management for 5 years supplemented with stock options and profit sharing.

IT Development » $500,000 usD

This encompasses the development team, platform build out, writing smart contract protocols, smart contracts audits and bug bounties. Included is the hiring of:

» Project Lead Developer (fullstack & Backend)

» solidity Developer

» frontend Developer

» uI Product Designer

The initial hiring of a lead developer and three full time developers for 2 years until platform incentive protocols are activated enabling a decentralised meritocratic development workflow.

La Mina project » $1.8M usD La Mina is our next land-based project seeking investment. We are developing 238 acres of cattle land into a productive food and lumber forest with on-site housing for owner use.

Budget includes purchase, start-up costs, equipment and planting required for:

» Newly constructed 4 bedroom home for cooperative use

» 20,000 to 25,000 trees for lumber harvesting over a 30 year period

» 5 tons of cacao produced each year

» 50 tons of turmeric produced each year

» 10 tons of sacha inchi produced each year » 150 acres of reforestation and wilderness

protection

Sales and Account Management » $250k usD

Includes the development of a sales team and account maintenance for the first 5 years supplemented with stock options and profit sharing.

Legal » $200k usD

This budget includes constructing national and international business structures for global scaling initiatives, employing legal compliance offices and establishing a contingency fund.

Once Alpha and Beta versions of the platform are released, LANA token holders from the initial sale will have first access to projects that are introduced to the platform to allocate their LANA to.

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leadership 4.1 team

sARA CzARNIECkI President, Founder

JOshuA hughEs Operations Manager, Founder

AMANDA WILsON Creative Director, Founder

JOhN JuDgE Partnership Coordinator

sTEVEN gANIsTERAgroforestry Systems Design

and Implementation

EsTEBAN JIMÉNEz CONTRERAs Site Management

ROLANDO MADRIgAL hERNÁNDEz

Harvest Coordinator

JAMEs BARfORD Tech Lead

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4.2 advisors and partners

ConClusion

Lanas de Puriscal, san Jose, Costa Rica

hello@weareblacksheep.org

weareblacksheep.org

We are paving the way for new economic structures and forms of value exchange for long-term prosperity. Asset-backed tokens are going to be a significant upcoming disruption. The intent remains the same: to build an economy where economic incentive is connected to ecosystem health so small communities and the environment benefit. We envision decentralized networks as future templates for regenerative communities to repair our world.

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roadmap

2006 2007 2008 2014

20152016

2017

2018 Q1

2018 Q2

2018 Q3 2018 Q4 2019 Q2

2019 Q3

2019 Q4

2020 Q1

» Purchased VerdEnergia in Lanas, Costa Rica» Began soil rehabilitation program and crop incubator at VerdEnergia» VerdEnergia opened share sales to new community members » Collective formed and purchased shangri Lanas land project in Lanas, Costa Rica» Blacksheep Regenerative Resource Management company formed» Enamorado land project acquired by Blacksheep and ownership collective formed in Lanas, Costa Rica» Product development of turmeric, partnership with Bioxtractos formed» Enter Blockchain, Whitepaper v1.0 developed » Turmeric crops harvested, processed and planted » Turmeric product research and development» Blacksheep marketing and sales development » Whitepaper v1.2 finalised » harvest, processing and planting of turmeric » finalize advisors & partnerships for token sale & blockchain development » finalize legal structures for token sale & Blacksheep International» Equity Token Private sale begins» Major turmeric harvest» Warehouse and laboratory headquarters established» Platform development and blockchain integration build out begins» Implementation of forestry proof-of-provenance software » Expansion to us market of superfood product distribution » Equipment purchase and rollout for La Mina project» Platform Alpha version release» Establishing partnerships & legal structures for global scale initiatives » Platform Beta release and international expansion rollout

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aCknoWledgmentsBlacksheep would like to thank:

The community of Lanas, and the Mora family especially, for their hard work, patience and support from the beginning

Jorge Fallas of our local MAG office, who has been pivotal in our efforts to reforest and bring back biodiversity through the gifting of thousands of trees each year

Esteban Diaz, for his research and continued support with sacha inchi and soil fertility

Bernardo soto of Bioxtractos, for his diligent research, long hours in the lab and in government offices, and for taking the brave steps of starting a new business in partnership with us

The VerdEnergia community, which has served as the foundational building block for Blacksheep, inspiring the growth and development of Blacksheep’s leadership and giving us opportunities to try, fail, and try again until we could devise real solutions to our challenges

The owners of shangri-Lanas for seeing the vision and taking the brave next steps with us to scale the mission of reforestation

Our advisors, family and friends who have contributed to the creation of this whitepaper and supported us through the process

The blockchain community, for the ongoing vision and courage to create better systems for a better world

legal

To actualize these aims, Blacksheep has established the following legal entities:

Blacksheep Regenerative Resource Management, LLC (USA)Blacksheep Regenerative Resource Management, SA (Costa Rica) The initial contribution period is a collaboration between the above entities with the intent of taking the DCO model and creating a legal entity which is owned and governed by the token holders.

disClaimer These projections are forward-looking, are subject to significant business, economic, regulatory and competitive uncertainties and contingencies, many of which are beyond the control of Blacksheep and its management, and are based upon assumptions with respect to future decisions, which are subject to change. Actual results will vary and those variations may be material. ThIs WhITEPAPER sETs fORTh A DEsCRIPTION Of ThE PLANNED BLACkshEEP PLATfORM AND ThE usE Of LANA TOkENs. ThIs Is BEINg PROVIDED fOR INfORMATIONAL PuRPOsEs ONLy AND Is NOT A BINDINg LEgAL AgREEMENT. ThIs WhITEPAPER Is NOT AN OffERINg DOCuMENT OR PROsPECTus, AND Is NOT INTENDED TO PROVIDE ThE BAsIs Of ANy INVEsTMENT DECIsION OR CONTRACT.

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end notes

1. Index of /files/capital21c/en. (n.d.). Retrieved March 31, 2016, from http://piketty.pse.ens.fr/files/capital21c/en/; Making Sustainability Profitable. (2013). Retrieved March 31, 2016, from https://hbr.org/2013/03/making-sustainability-profitable

2. Veridium Marketplace, “What is Natural Captial”, Veridium Whitepaper, 2017 http://veridium.io/wp-content/uploads/2018/01/Veridium-White-Paper.pdf

3. union of Concerned scientists, “hidden Cost of Industrial Agriculture”, Retrieved April 10, 2018 from https://www.ucsusa.org/food_and_agriculture/our-failing-food-system/industrial-agriculture/hidden-costs-of-industrial.html

4. global footprint Network, “By the Numbers”, Overshootday, 2018 https://www.overshootday.org/

5. Veridium Marketplace, “What is Natural Captial”, Veridium Whitepaper, 2017 http://veridium.io/wp-content/uploads/2018/01/Veridium-White-Paper.pdf

6. The peasant view of conservation. (n.d.). Retrieved March 31, 2016, from http://webcache.googleusercontent.com/search?q=cache:nRufLTug66kJ:www.nzdl.org/gsdlmod?e=d-00000-00---off-0cdl--00-0----0-%2010-0---0---0direct-10---4-------0-1l--11-en-50---20-about---00-0-1-00-0--4----0-0-11-10-0utfzz-8-%2-000&cl=CL2.25.1&d=hAsh012006dfb0cd7c7aafc050db.9%3E=1

7. Araya, k., Lherisson, B., & Lomberk, J. (2014). Pesticides, Pollution, and People: An overview of Public health and Environment in Costa Rica. Retrieved from https://www.law.ufl.edu/law/wp-content/uploads/2012/04/2014-CR_Public-Health-Practicum_Report-final.pdf

8. shiva, Vandana, “We are the soil”, Common Dreams, May 26, 2014. Retrieved April 4, 2018 from https://www.commondreams.org/views/2014/05/26/we-are-soil

9. Mbaria, J. & Ogada, M. The Big Conservation Lie. Auburn: Lens&Pens Publishing, 2017. 56-60. Print.

10. Mbaria, J. & Ogada, M. The Big Conservation Lie. Auburn: Lens&Pens Publishing, 2017. 32-7. Print.

11. Mbaria, J. & Ogada, M. The Big Conservation Lie. Auburn: Lens&Pens Publishing, 2017. 38. Print.

12. survival International. Parks need peoples. 2014. https://assets. survivalinternational.org/documents/1324/parksneedpeoplesreport.pdf

13. Joel Dietz, “Components of the Network stack”, Network state Whitepaper, 2017 https://www.dropbox.com/s/ramz8scma26mk4y/Network_state_Whitepaper%20%200.2.5.pdf?dl=0

14. swarm fund, “Coop Ownership for Real Assets”, swarm fund Whitepaper, 2017 https://www.swarm.fund/whitepapers/index.html

15. Joel Dietz, “funding in Network stack”, Network state Whitepaper, 2017 https://www.dropbox.com/s/ramz8scma26mk4y/Network_state_Whitepaper%20%200.2.5.pdf?dl=0

16. Woodshares.co, “Proof of Asset Verification”, WoodShares, 2017 http://www.woodshares.co/support

supporting sourCes

Coin Center, Distributed Collaborative Organisations, Networks and Regulatory frameworks, 2017. https://www.scribd.com/ doc/255347578/sWARM-Working-Paper-Distributed- Networks-and-the-Law

singularityNET, “Economic Logic”, singularity Whitepaper, 2017 https://public.singularitynet.io/whitepaper.pdf