Value Over Hours

The Philosophy#

Time is a poor proxy for value. Hours are easy to tally and hard to compare across roles. Fairly Exact recognizes progress delivered through milestone-driven Contribution Blocks, not time spent.

👉 We don’t reward time. We reward milestones.

What This Means in Practice#

• Blocks, Not Timesheets: Contributors earn units through Contribution Blocks (e.g., Alpha release, Landing Page, First Customer). Each block picks a size from the triangular catalog: 1 (Micro) / 3 (XS) / 6 (S) / 10 (M) / 15 (L) / 21 (XL). The size is an input — minted units = size × stage multiplier — and only accepted units enter the member ledger.
• Contractor-Equivalent Scope Proxy: Block size isn’t a gut call. The team estimates what an outside contractor might charge to deliver the defined milestone — a default of ~$5,000 per size point, so an M (size 10) fits a ~$50,000 proxy. The proxy is a shared sizing input, not the actual or complete value of the contribution.
• Stage Multipliers: Your company stage determines the multiplier:
  • Stage 0 (Conception): ×5
  • Stage 1 (Early Build): ×4
  • Stage 2 (Early Market): ×3
  • Stage 3 (Growth): ×2
  • Stage 4 (Steady State): ×1
• Honest Dilution: A block’s dilution is minted ÷ (existing ledger + minted). It depends on how big the ledger already is, so the same block dilutes differently at different moments. Any percentage quoted without its ledger size is meaningless.
• Planned Allocations: Before a block is activated, contributors document planned percentage splits. Delivered impact and team judgment determine the accepted allocation at retro.
• No Hourly Tracking: Different work types (code, sales, operations) sit side-by-side inside a Contribution Block. No logging of hours.

Why It Matters#

• Zero Tracking Fatigue: No timesheets, no hourly debates.
• Cross-Role Fairness: Build, Sell, Manage, and Maintain work recognized equally.
• Anchored Denominator: A shared scope proxy keeps block sizing comparable without claiming to value the company or the complete contribution.
• Legible Dilution: Every block’s impact is computable from the ledger at the time it mints — stated with its denominator, every time.
• Stage Recognition: Earlier work gets higher multiples, reflecting higher risk.
• Clarity Upfront: Contributors know their percentage before work starts; ±10-20% adjustments at retro for delivered work, with non-delivery allocated to zero.

Example#

Assume a $5,000 rate and a ledger that has already grown through earlier blocks. Dilution is always shown against the ledger at that moment.

• Stage 0 Alpha Block — a milestone you’d have paid a contractor roughly $75,000 to deliver, so L (size 15) at ×5 = 75 units minted

  • Lead engineer: 60% = 45 units
  • Designer: 30% = 22.5 units
  • Ops lead: 10% = 7.5 units
  • Ledger: 1,000 → 1,075. Dilution: 75 ÷ 1,075 = 7.0% (the same block against a 200-unit ledger would be 27%)

• Stage 2 Sales Block — roughly $50,000 as a contractor-equivalent scope proxy, so M (size 10) at ×3 = 30 units minted

  • Sales lead: 70% = 21 units
  • Marketing support: 30% = 9 units
  • Ledger: 1,500 → 1,530. Dilution: 30 ÷ 1,530 = 2.0%

Notice that both dilution figures are quoted against a stated ledger size. That’s not pedantry — it’s the only way the number means anything. The same M block against a different ledger is a different percentage.

In One Line#

Value Over Hours = recognize delivered milestones through Contribution Blocks sized with a shared scope proxy and scaled by stage risk, not clock time.