MountainKraft Whitepaper


Table of Contents

1. Disclaimer

The information in this whitepaper is subject to change or update and should not be construed as a commitment, promise, or guarantee by MountainKraft or any other person or organization mentioned in this whitepaper regarding the future availability of services related to the use of tokens or their future performance or value.

This document does not constitute an offer or solicitation to sell shares or securities. It does not constitute an offer to sell or subscribe for securities or a solicitation to buy or subscribe for securities and should not be used as the basis for any contract or obligation of any kind, nor should reliance be placed on this document or parts thereof. MountainKraft expressly disclaims any responsibility for direct or indirect losses or damages of any kind arising directly or indirectly from reliance on the information contained in this whitepaper, from errors, omissions, or inaccuracies in such information, or from any actions resulting therefrom.

This whitepaper is not a purchase recommendation or financial advice but is for informational purposes only. Do not act or invest in tokens, companies, or entities based solely on this information. Every investment carries significant risks, including but not limited to price volatility, inadequate liquidity, and the potential complete loss of capital. Investors should conduct independent due diligence on the topics discussed in this document with the support of professional financial, legal, and tax experts and form an independent judgment about the relevant markets before making any investment decision.

We have compiled all the information contained herein from sources we believe to be correct and reliable. However, this information is presented without any warranty, express or implied. All market prices, data, and other information are provided without warranty of completeness or accuracy, based on selected public market data, reflecting prevailing conditions and our views at the time, and are subject to change without notice. Charts, diagrams, and other visual aids are provided for informational purposes only. None of these charts, diagrams, or visual aids can be used alone as the basis for investment decisions. No representation is made that they will assist any person in making investment decisions, and no chart, diagram, or visual aid can capture all factors and variables required for such decisions.

The information contained in this document may include or refer to forward-looking statements that are not historical facts. No representations or warranties are made regarding the accuracy of such forward-looking statements. All projections, forecasts, and estimates contained in this document are necessarily speculative and based on certain assumptions. These forward-looking statements may prove to be incorrect and may be affected by inaccurate assumptions or by known or unknown risks, uncertainties, and other factors, most of which are beyond our control. It is expected that some or all of these forward-looking assumptions will not materialize or will differ significantly from actual results.

2. Basics, Motivation & Mission of MountainKraft

2.1 Nature, Environmental Protection & Sustainability

We, the MountainKraft team, are fortunate to live in a small town surrounded by a wonderful natural landscape. Green meadows, swimming lakes, a river, and a magnificent mountain landscape are just a few minutes away from the town center. The population is considered one of the most athletic in the nation. No wonder, then, that the MountainKraft team members engage in running, cycling, swimming, climbing, skiing, cross-country skiing, ice hockey, sailing, yoga, etc.

We consciously move in nature and live environmental protection and sustainability. This applies not only to sports activities but is an integral part of our entire lives. Even daily errands and commuting to work are mostly done on foot, by bike, or public transport. Naturally, we do not leave any litter in nature. Respectful treatment of nature and its resources can be practiced more than ever today without having to forego comfort and technological achievements. And if this is not yet possible in some aspects, then it is up to us as a society to come up with a sustainable solution or to develop one.

These ecological approaches must be expanded to include aspects of Corporate Social Responsibility (CSR) because sustainable business cannot be realized without social responsibility.

Under these premises, we also want to shape our economic development and use all the possibilities available to us for maximum nature and environmental protection through sustainable procedures and practices and CSR methods. These include, in particular:

  • Using sustainable, preferably nature-based materials for the production of goods,
  • Producing resource-efficiently,
  • Producing and marketing energy-efficiently, for example, through short transport routes or the choice of an energy-efficient blockchain, and finally
  • Promoting regional craftsmanship and artisanal production in small manufactories to preserve local talents and their know-how.

2.2 Traditional (Artisan) Craft and New Technologies

The combination of traditional (artisan) craft and new technologies is not a contradiction.

Although the latest technologies may initially appear in more “modern” areas of application, no entrepreneur in a sector that produces according to traditional methods can ignore new technologies. However, it is always the responsibility of the actors to take an interest in new technologies and to use them.

To develop this awareness, all it takes is an interest in new things. The next step, the use of new technologies, is significantly more challenging. Often, there are technical, temporal, organizational, or even financial hurdles, and the question arises as to what extent the individual can master this challenge. Imagine, for example, a carpenter or potter who wants to place his handcrafted unique piece on the blockchain. To achieve this at present, he needs a degree in computer science or disproportionate perseverance.

This is where MountainKraft comes in, pursuing several goals simultaneously. First, we need to be economically successful ourselves to afford a service to the general public. Additionally, we want to create a connection between the analog and digital worlds and make this connection accessible to the masses. This means that, in principle, everyone should have access to new technologies. To achieve this goal, entry barriers must be minimized.

MountainKraft aims to create a platform that dissolves barriers in the connection between the analog and digital worlds.

2.3 Use of the Ethereum-Based Blockchain

MountainKraft primarily uses Ethereum, one of the best-known blockchains that go beyond mere payment transactions and allow the execution of smart contracts – programmable contracts that can automatically trigger specific actions.

Ethereum has particularly distinguished itself as a platform for non-fungible tokens (NFTs). NFTs are unique digital assets stored on the blockchain that verify the authenticity and ownership of digital art, music, or other digital goods. The ERC-721 standard on Ethereum enables the unique identification and differentiation of individual NFTs, ensuring their uniqueness. Unlike fungible token standards like ERC-20, which are interchangeable, ERC-721 emphasizes the uniqueness of each token. This uniqueness is crucial for digital artworks or collectibles as it ensures the individual value and authenticity of each NFT.

Despite its popularity, the Ethereum blockchain faced significant challenges until 2022. Scalability is a central issue as high transaction volumes can lead to delays and increased costs. Ethereum’s energy consumption caused by proof-of-work (PoW) was at odds with growing environmental concerns. With the transition to proof-of-stake (PoS), Ethereum’s carbon footprint was reduced by at least 99.84%.

2.4 Technical Implementation at MountainKraft

The hand-carved figures are digitized using photogrammetry: First, 360° photos of the figure are taken and then converted into a 3D model using software. Since photo quality is crucial for the quality of the 3D model, this is done in a professional studio where the lighting conditions can be ideally set for the process.

After the scan and conversion, digital post-processing takes place: The 3D models are cleaned up, i.e., faulty paths and polygons are corrected. To keep the data volume low, the file size is reduced by reducing the number of polygons in the model.

The 3D models are then uploaded to the InterPlanetary File System (IPFS) along with a screenshot and the necessary metadata. IPFS is a worldwide, decentralized, and redundantly distributed system where files can be stored and retrieved. Since the blockchain code must be independently executable from external sources, IPFS offers the possibility of linking larger files with a blockchain. On-chain minting is not sustainable for 3D models due to the data volume.

The MOAI NFTs are minted on the Ethereum blockchain and can then be acquired on NFT marketplaces like OpenSea. The ERC721A serves as the Ethereum base contract – a variant of ERC-721, the Ethereum standard for non-fungible tokens. ERC721A allows for significantly reducing the data volume and minting fees (“gas fee”).

2.5 NFTs & the Global NFT Market

A non-fungible token (NFT) is a cryptographically unique, indivisible, non-interchangeable, irreplaceable, and verifiable token that represents a specific item, whether digital or physical, on a blockchain. An NFT represents a unique ownership right to a digital product. While NFTs use the same technology as cryptocurrencies, they are unique and not divisible (non-fungible – not interchangeable). An NFT can only be acquired as a whole and exists only once. An NFT can be sold, exchanged, or given away. To participate in this trade, buyers usually need a “wallet,” a digital wallet with cryptocurrencies. However, some platforms also allow payment with traditional fiat currencies or credit cards.

On platforms like OpenSea or Rarible, artists can create their own NFTs or entire NFT collections. Particularly valuable NFT collections are still those of the CryptoPunks or the Bored Ape Yacht Club.

In early 2021, NFTs experienced a hype with up to 34,000 NFT sales per week in May (revenue about $173 million per week), a quarterly revenue of over $2 billion, and growth of 13,118%! This hype was also fueled by the then most expensive NFT sale in history, namely the artwork “The First 5000 Days” by digital artist Beeple for $69.3 million. However, by June, weekly NFT sales had already dropped to about 20,000, with revenue of “only” about $12 million per week.

After a longer dry spell, NFT trading is picking up again globally. At the time of writing this whitepaper (Fall 2023), the trading volume for 2023 was estimated at around $1.5 billion. Analysts expect growth of about 19% and an increase in trading volume to about $3 billion by 2027.

The NFT market is extremely volatile. Before considering purchasing an NFT, a thorough market analysis is strongly recommended.

2.6 Phygital Products

The term “phygital” originally comes from the world of marketing and describes a fusion of physical and digital aspects. “Phygital” is understood as a bridge between the analog and digital worlds. A simple example is a company that sells products in both a physical store and an online store. In the gaming sector, Pokémon Go is an example that offers players a digital experience and simultaneously an activity in the real world. Most phygital products are currently found in the fashion sector.

Many major brands are experimenting with NFTs, including Louis Vuitton, Hermès, Gucci, Chanel, Dior, Balenciaga, Adidas, Nike, and countless smaller brands that have recognized the potential of phygital products. After all, digital garments can be used in social media and Web3/Metaverse to suitably dress one’s avatar.

The NFT technology has opened a door to a completely new creation of products, the “phygital products,” which exist both digitally and physically simultaneously. Phygital products combine the advantages of both worlds. A real product can be touched, used, and if desired, even eaten or destroyed. A digital product can be used in gaming worlds, Web3, and the Metaverse, but more importantly, NFTs provide an absolutely tamper-proof proof of ownership. Product piracy and counterfeiting can thus be ruled out.

3. MountainKraft Creates Phygital Products

MountainKraft creates phygital (artisan) craft products. Initially, there is a real product created by real people, which is subsequently 3D-scanned, and this 3D scan finally becomes the digital NFT.

Physical product and digital twin thus form a joint product.

The 3D NFT can be printed by MountainKraft enthusiasts on a 3D printer, thereby also receiving a physical product.

3.1 MountainKraft Collections

The MountainKraft team creates its own phygital collections but also provides a platform for other (artisan) craftspersons to phygitalize their products and thereby open up a completely new market. The type of products is fundamentally irrelevant. However, they must correspond to the basics and mission of MountainKraft. The decision on the inclusion of new phygital products is made exclusively by MountainKraft.

All phygital collections are limited, with the edition size published before the release of a new collection.

3.2 Attributes in Collections

The NFTs of the MountainKraft collections may – but do not have to – have attributes. These attributes vary depending on the collection and the type of phygital products. MountainKraft products are already unique pieces where no two are alike. Additional attributes, however, allow buyers to further customize the phygital products, which may also potentially increase their value in the future.

The predefined and generated attributes are recorded in the respective smart contract. This makes them part of the main NFT.

4. Transfer of Ownership & Shipping of Physical Products

This whitepaper and MountainKraft’s General Terms and Conditions naturally apply only to the legal relationship between MountainKraft and the respective first original purchaser of the phygital product, but not to later resales (resells) by the original purchaser or their legal successors. The legal relationships arising from the NFT trading platforms concerning our reseller commission remain unaffected or in force.

NFTs are stored in the blockchain for eternity. But what actually happens to the physical original products? There are several possibilities:

  • The physical product is generally offered simultaneously with the NFT; otherwise, our collections would not be phygital but either only digital or only physical.
  • MountainKraft enthusiasts from Europe, Liechtenstein, and Switzerland can purchase these phygital products without restriction and thereby acquire ownership of the digital NFT and the physical original product. Logistics and shipping are handled by MountainKraft. The costs for packaging and shipping are already included in the price of the phygital product.
  • MountainKraft enthusiasts outside Europe can only purchase the NFT and acquire ownership of it. Purchasing the physical product is only possible if the import regulations of the buyer’s country of residence allow the import and the buyer bears the costs for a chemical or thermal treatment, the necessary documents (e.g., phytosanitary certificate), and the shipping costs.

Due to the nature of the physical products, import regulations of the buyer’s country of residence may make the actual transfer of the physical product difficult or (in the case of import bans) impossible. This specifically concerns MountainKraft collections made from natural materials, such as wood or bark, which cannot be imported into a target country or can only be imported with disproportionate effort (official inspection process, phytosanitary certificates, etc.). This applies especially to shipments to the USA, Canada, Australia, New Zealand, the UK, and China, or the Asian region.

These import and shipping restrictions to certain countries will be separately indicated when each MountainKraft collection is published.

MountainKraft is striving to find solutions for the mentioned import and shipping restrictions. The team also hopes for support from the community. We understand shipping restrictions when it comes to protecting biodiversity in the target country. In some cases, however, states use strict regulations as a barrier to protect their domestic markets.

4.1 Shipping Physical Products in Europe (Including Switzerland and Liechtenstein)

Within Europe (including Switzerland and Liechtenstein), shipping physical products made from natural materials is unproblematic.

4.2 Procedures for Physical Products Outside Europe

MountainKraft offers MountainKraft enthusiasts outside Europe the following options, depending on the legal conditions in the destination country (import restrictions):

  • Buyers can print the 3D NFT on a 3D printer and thus at least have a physical representation of the 3D NFT.
  • If shipping is legally and practically (administrative effort and costs) possible, shipping of the original physical product can be arranged at the buyer’s expense and risk.
  • Buyers can personally collect the original physical product at our company’s headquarters (representative with power of attorney).
  • Buyers can commission MountainKraft free of charge to officially and verifiably burn the original physical product at a solstice fire on June 21 each year.
  • Buyers can commission MountainKraft to store the original physical product in the MountainKraft depot for an annual fee.
  • MountainKraft also has a vision: If the economic situation allows, an MK Gallery will be opened in the next few years, where phygital products will be permanently and publicly displayed.
  • Buyers can transfer their physical product to MountainKraft for use in exhibitions or promotional purposes. However, forwarding or reselling the transferred physical product is definitively excluded.
  • If buyers do not respond to MountainKraft’s inquiries about the further use of the physical product after the transaction despite three contact attempts, MountainKraft will decide on the use of the physical product itself after three months from the last contact attempt.

4.3 Important Notes for Resellers & Second Buyers

If you want to resell your phygital MountainKraft product, you should note the following:

  • MountainKraft charges a 5% reseller commission.
  • MountainKraft ensures that all collections are delivered with high-quality packaging (e.g., branded wooden box or branded cardboard packaging) to protect the product and to enable multiple reselling with consistent product and packaging quality. This high-quality packaging is shipped in a (non-protective and interchangeable) shipping box.
  • For reselling, it may be crucial that the physical product, as well as the original packaging with accessories (wood wool, leaflet, other contents), is complete and well-preserved. This may also result in a higher price. If you only have the physical product without the original packaging in addition to the NFT, you may have to expect price reductions.
  • It is therefore recommended to keep the original packaging (e.g., branded wooden box or branded cardboard packaging) with accessories (wood wool, leaflet, other contents) for later reselling.
  • Second buyers are advised to ask the respective reseller about the original packaging and contents before purchase if this information is not already provided in their reselling offer.

5. Onboarding Process for External Third-Party Providers

There are two options for onboarding external third-party providers:

  • If the phygital products are already technically and organizationally prepared by the external third-party provider to be published on MountainKraft’s platform, MountainKraft will check whether these conditions are met and whether the phygital products correspond to the basics and mission of MountainKraft. If so, a distribution contract is concluded with the external third-party provider.
  • If the external third-party provider offers MountainKraft physical products that are fundamentally suitable for phygitalization and correspond to the basics and mission of MountainKraft, MountainKraft can support the external third-party provider in the phygitalization. In this case, a cooperation agreement is concluded, regulating the rights and obligations of both contracting parties. Important points include:
    • Checking and guaranteeing the reliability of the external third-party provider that they can actually deliver what they promise.
    • Actual transfer of the physical products into MountainKraft’s control (transport to MountainKraft’s warehouse or exclusive access to an external warehouse).
    • Quality control of the physical products by MountainKraft before phygitalization.
    • Phygitalization by MountainKraft (also through cooperation partners).
    • Fair determination of the intellectual property rights of the external third-party provider and MountainKraft.
    • Determination of the compensation for MountainKraft’s time, technical, and organizational effort for phygitalization, NFT generation, marketing, distribution, and follow-up of the introduced collection.
    • Roadmap from the time of contract conclusion to the publication of the collection and the intended follow-up.

6. Onboarding Process for MountainKraft Enthusiasts

MountainKraft operates the website and uses the following social media platforms as additional presences:

MountainKraft uses OpenSea among other marketplaces. MountainKraft enthusiasts only need a wallet.

7. Roadmap

MountainKraft aims to become the world’s leading platform for phygital products in the (artisan) craft sector. This cannot be achieved on our own, as (artisan) craft means that products are created with a high proportion of handwork.

The few team members can only produce a very limited number of phygital products themselves, even if they worked around the clock.

Therefore, an integral part of MountainKraft’s strategy is to also involve external third parties as creators of phygital products and to ensure a constant supply of new collections. We are convinced that by doing so, we can build MountainKraft into a lasting institution that will continue to exist even when the founding members are long gone.

The schedule plans for MountainKraft to release the first collection in Q2 2024.

8. Team

KRAFTlackel Raphael

Our Technical Hero for 2D & 3D graphics, blockchain & token economics, NFTs, and software development.

He built the MountainKraft-World and is our “Artist of Code” for everything digital. No wonder, considering he has over 20 years of experience as a software developer.

Privately, he really rocks out as the lead singer of his stoner-glamrock band. But only when he’s at home, as he might be traveling as a digital nomad in Lisbon or Bangkok. We don’t know!

KRAFTlackel Michael

Michael Monsignore handles marketing & communication. He is our storyteller, bringing our crazy ideas to the point and doing it so skillfully that even we believe him.

As a top-heavy communicator, he practically co-invented Discord because, without his constant flow of content, the channel would be half empty. Having fun with LLMs and other AI tools is one of his newer hobbies. Marketing is in his blood, and he has been following this calling for over 15 years. High-ranking politicians and international brands have already let him put words in their mouths.

KRAFTlackel Wolfgang

The basic idea for MountainKraft grew on his “manure” (watch out, this will be important!). He is a trained lawyer, was a lobbyist for many years, and has been coaching founders & startups in economic and legal matters for 7 years. As Head of Strategy at MountainKraft, he thinks about the future but also rolls up his sleeves when he thinks he can do it better. In fact, he carved all the physical MOAIs of the first collections himself.

The carving is purely genetic, as his great-grandfather Franzl left him an entire woodworking shop with cool old tools.

9. Ecosystem

MountainKraft operates within an ecosystem that includes cooperation partners from various fields.

When creating new collections, we rely not only on our own ideas but also on those of other (artisan) craftsmen, artists, or self-taught creatives.

In the fields of New Economics, blockchain, token, crypto, and cybersecurity, we tap into an international network of experts when we cannot tackle challenges in-house.

In the New Media sector, including social media, 3D visualization, and VR/AR, we are networked with several regionally based but globally active branding & marketing agencies that support us according to the motto “All for one.”

10. Disclaimer

MountainKraft is subject to the same risks as all other participants in the NFT market regarding digital products and technical performance. These risks, especially the simultaneous occurrence of multiple risks, can also negatively impact our own operational performance.

MountainKraft strives to constantly monitor the market, customer behavior, technological developments, and the legal situation, identify risks early, and adapt its business model, strategy, and actions to minimize risks.

Initial adjustments to the business model were already made during the founding phase, as MountainKraft does not limit itself to its own phygital products but also opens up as a platform to external third-party providers. Serving the global market without restriction to small regions, such as the DACH area, was another decision to address as many third-party providers and potential customers as possible.

The small MountainKraft team currently covers all the skills required for the operation of the initiative. The loss of a team member could also impair our performance. MountainKraft strives to have all key skills “redundantly” within the team to ensure constant operation.

MountainKraft is also dependent on third-party providers for its technical performance, such as blockchain, cryptocurrency, and wallet operators. Limitations, failures of the technical infrastructure of these third-party providers, or cyber-attacks on their infrastructure can impact the continuous and proper functioning of our platform. In these cases, we depend on the compliance of the third-party provider with their delivery and maintenance agreements.

MountainKraft’s liability is excluded to the extent that this liability exclusion is not contrary to statutory provisions. Please note that this whitepaper is provided for informational purposes only and does not constitute a legally binding obligation of the authors or third parties. It is the responsibility of the users and buyers to adequately inform themselves about the specifics of the NFT market.

MountainKraft – We phygitalize nature!