Principles
The 12 core principles that guide fair equity distribution
Build on Trust
Choose partners you trust completely — the system can't fix broken trust
Communicate constantly and document everything for clarity, not surveillance
Great systems can't fix broken trust. Choose partners wisely, communicate constantly, and let fairness follow.
Simplicity is Sacred
Early-stage founders already carry a huge burden — tracking equity shouldn't add fatigue
Most operating scenarios use a bounded block catalog, stage multipliers, and documented defaults
If it isn't simple, it won't be sustainable. And fairness dies in complexity.
Alignment Over Optimization
Prioritize systems that create team alignment over mathematically perfect optimization
Block catalogs and weighting factors are intentionally capped and clear
Team alignment matters more than mathematical perfection.
Clear Commitments
Equity isn't just about past contributions; it's tied to clarity of roles
Each contributor's responsibilities documented before block work begins
Fairness requires clarity — not just in math, but in commitments.
Contributions Always Matter
Delivered active work can earn accepted units; cash and external advice remain visible in separate records
Once units mint, they are not relitigated — only misconduct can forfeit them
No contribution gets erased. Fairness starts with recognition.
Value Over Hours
Tracking hours incentivizes the wrong behavior (time spent ≠ value delivered)
Contribution Blocks track milestone-driven outcomes with triangular sizes (1/3/6/10/15/21)
It's not about how long you worked, it's about what you actually created.
Capture All Contributions
Contribution Blocks recognize four active-work roles
Build: Code, design, engineering, product creation
If you don't name it, you'll undervalue it.
Cash Is Respected
Cash is recorded in a separate cash ledger
Funding Blocks preserve proposed terms and separate instrument references
Cash is recorded clearly and negotiated separately from contributed work.
Simple, Predictable Exits
Accepted block units remain fixed after departure
Departed contributors retain an accepted-unit balance until finalization
Departure ends interim voting, not earned economics.
Economics Outlast Involvement
Departure freezes a contributor's accepted unit balance
Later accepted blocks dilute active and departed units alike
Accepted contributions remain in the final ledger even after participation ends.
Ownership Stays Legible
The member ledger is the framework's interim allocation and governance record
Every accepted unit traces to a delivered Contribution Block and acceptance
Keep the member ledger, every vote, and both finalization paths traceable without overstating the ledger's legal effect.
Integrity Through Documentation
Equity management isn't separate from governance
Each block acceptance includes documentation of defining decisions
Equity is inseparable from the agreements that govern it.