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 scenarios handled with clear defaults: Standard Block catalog sizes, Default weighting factors, Automatic exit rules
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
Every contribution — time, cash, expertise, relationships, equipment — creates real value
Once minted into the ledger, contributions can never be taken away
No contribution gets erased. Fairness starts with recognition.
Value Over Hours
Tracking hours incentivizes the wrong behavior (time spent ≠ value delivered)
We track Blocks — milestone-driven outcomes with triangular sizes (1/3/6/10/15/21 units)
It's not about how long you worked, it's about what you actually created.
Capture All Contributions
Equity recognizes four contribution types plus funding
Build: Code, design, engineering, product creation
If you don't name it, you'll undervalue it.
Cash Is Respected
Cash is the most direct, high-risk contribution — especially early on
Tracked in separate ledger with full redemption above 2x return
Cash fuels the company. It deserves respect and fair treatment.
Simple, Predictable Exits
Exits are emotionally messy; the system shouldn't make them financially messy too
Three clear exit types: Quit (Voluntary) with automatic phantom equity conversion, Terminated (No Cause) same as quit with no penalty, Terminated (For Cause) only misconduct can result in forfeiture
People may leave, but fairness stays consistent.
Economics Outlast Involvement
Exited contributors' units convert to phantom — non-voting participation rights
Phantom units participate proportionally in all distributions and exits
Your contributions always matter economically, even after you leave.
Keep Cap Tables Clean
Investors hate messy cap tables with dozens of micro-shareholders
Fairly Exact translates contributions into phantom equity, not permanent equity slivers
Fair to contributors, clean for investors.
Integrity Through Documentation
Equity management isn't separate from governance
Each Block's minting includes documentation of defining decisions
Equity is inseparable from the agreements that govern it.