10
Economics Outlast Involvement
Accepted contributions remain in the final ledger even after participation ends.
The Philosophy#
People stop participating; completed contributions do not disappear. Fairly Exact separates interim control from final economics.
During the dynamic period, only active contributors’ accepted, undisputed units carry voting weight. Departed contributors retain an accepted-unit balance, and its percentage continues to dilute as the ledger grows. Governing documents determine the balance’s legal and tax effect.
At finalization, voting eligibility no longer controls the calculation. Every eligible accepted unit—active or departed—enters the final denominator. The formula produces path-neutral frozen percentages for professional execution through FIXED_LLC or CORPORATE_CONVERSION.
The framework does not authorize discretionary distributions against the changing ledger. A contemplated discretionary distribution triggers finalization; qualified professionals must design any tax distributions, allocations, or exceptions in the governing documents.
Example#
Alice leaves with 5,000 of 50,000 accepted units. Her member-ledger percentage is 10% at departure and she has no interim voting weight. Later blocks add 25,000 units, so her frozen percentage would be 6.67% if finalization occurred then.
In One Line#
Economics outlast involvement = accepted units survive departure, lose interim control, dilute normally, and settle into permanent ownership at finalization.