Week 2 — Update & Priorities This week is spent focused on operational development — building internal systems, defining external processes & structuring how founders move through our incubation engine. Operational Focus: • Refining negotiation principles & determining when, or if, to make exceptions to our model. • Formalizing proposal flow, agreement letters & client onboarding. • Establishing clear distinctions between the Funnel (intake & validation) and Pipe (active build & compounding). On Negotiation: Our model remains founder-first: we take no equity, no cash, no revenue share. Founders mint a token, often for free (often designed by us); we take 5% and assume the risk of compounding it over a six-month-plus horizon. If we fail to grow client assets, we lose time, $SKY, and risk insolvency as NAV declines. We are aligned with our clients via survival itself. Rest assured we are going to work for them. Current Status: • 4 active clients in build, proposal or negotiation (in-Pipe). • 30+ applications in review (in-Funnel). • Council Cohort #1 (20 members) targeted for intake next week. • Funnel currently constrained to maintain quality; will expand as systems mature. Incubation Engine: We’ve shifted from a linear “supply chain” engine to a modular framework built around 8–10 buckets. Each bucket contains 8-12 Partner domain experts (and soon 10-15 addl. Council members) aligned by incentives to move founders through defined stages & aid in solving their hardest problems. There is no longer a reason to go alone. Token Operations: • 90% locked supply now transferred to multi-sig. • 5% incentives bucket activated for client distribution campaigns. • Full vesting structure & contract references to be published in updated documents next week. • NAV Dashboard in design — will display all partner allocations, wallets & positions for full transparency; about a month out still. Near-Term Priorities: • Push our 4 clients through our Pipe. • Finalize Council Cohort #1. • Publish updated documents with vesting & allocation details. • Deploy first version of the NAV Dashboard (~1 month). • Announce initial client partnerships & coordinated distribution campaigns (sooner than you think). Today, Skycastle is the engine. Our job is to turn the network itself into an engine — and Skycastle into the gearbox. Forward Timeline: • NAV compounding period begins immediately. • Buyback automation expected in ~6 months, following NAV growth milestones. • First quarterly letter (Q4) to include full operational, client & NAV summary. Though, NAV will be marked monthly on the dashboard. Skycastle remains focused on aligning incentives, refining structure, and scaling the ecosystem sustainably.