Simple, Predictable Exits

The Rule#

A departure changes participation and governance, not the historical member ledger. Accepted units stay in place and dilute as later work is accepted. The departed contributor retains an accepted-unit balance with no interim voting weight. Qualified professionals and the governing documents determine its legal effect.

What Happens on Departure#

• Mark the participation end date.
• Remove the departed contributor’s units from the interim voting denominator.
• Resolve pending work on delivery and acceptance, not on the emotion of the exit.
• Follow the notice, information, tax, and compliance process established by qualified professionals.
• Do not create an automatic payout or replacement instrument.

At finalization, accepted units of departed contributors return to the final economic denominator and settle into permanent ownership on the same formula that applies to active contributors.

Cause and Unaccepted Work#

Undelivered or disputed work has not entered the accepted ledger and therefore creates no earned units. Any separate misconduct forfeiture of already accepted units must be expressly authorized in the signed documents and administered with counsel; it must never be improvised as an exit penalty.

In One Line#

Simple exits = stop active voting, preserve accepted units, resolve unfinished work normally, and let mandatory finalization settle the ownership.