That has to be the most interesting pencil sharpener I've ever seen. I can see myself wasting a lot of pencils because watching those spinning blades in action could be addictive. I assume by the patent marks that it's of German origin, made between 1891 and 1945?

You would have to think that the top clamp holding the pencil is geared with the cutting blades so the pencil turns in unison and gets sharpened evenly. It seems like a very complicated solution compared to the single blade sharpeners that spin around the pencil point, which are what I grew up with.

I just took a look at eBay and was surprised by what these designs are selling for: even this well-used variant has a $250 USD starting price. I guess I won't be adding one of these to my desk anytime soon! 



And this one that is very similar to the OP's, which is missing the collection section is $129.

I'm making an assumption, but if you look at the three-blade American version of the design in the above photo, you can see a toothed gear on the pencil holder, which supports the idea. Also, what would be the point of a spinning-blade sharpener if you had to manually twist the pencil at the same time?  

Well, that answers the question, but now I'm wondering if there's a cover for those gears that is missing. Watching them operate would certainly add to the enjoyment of using the sharpener, but it's a dog's breakfast from an aesthetic point of view.