# Work to Own Team Model ### Goals Align team through revenue sharing over both short and long term time horizons with a focus on incentivizing further growing revenue. Create an incentive structure that vets new contributors for misalignment with the rest of the team and gradually eases them into becoming full product co-owners. Protect the team’s and project’s well being as a product for the long term. --- ### Lessons Learned From Previous Projects Over the course of intense and often tumultuous formative periods we’ve realized a few things about team building: * We want a team of self-starters and doers that are comfortable with wearing many hats, can collaborate effectively with others, can adjust on the fly to any situation, and look for constructive solutions when faced with a problem. * Team members are here to own what we’re building (and not just be part of it). * We value initiative, self-direction, scrappiness, collaboration, and curiosity. * No dramas. Only open conversations whenever tension or conflict arises. 90% of the time it’s a misunderstanding. The other 10% it’s something to be worked through in a civil fashion. * Team harmony is a matter of trust. If you can’t trust your teammates you can’t count on their work or their help when you need it, which results in division and isolation. * Trust can only be built with time and effective communication. No matter how great or talented a potential new team member is on paper you can’t really know how they’ll fit in until you’ve worked with them through enough stressful situations. Thankfully there’s a lot of stress in crypto, so we can evaluate this relatively quickly. --- ### Team Ownership and Revenue Share Three tiers of ownership (based on the lessons learned above) 1. None: one-off freelancers, third parties collaborators, recurrent contributors to smaller tasks, team members being evaluated for joining the co-owner track 1. Partial co-ownership: team member on track for full co-owner track. Must be a full time contributor to be eligible. Starts once majority of current full co-owners vote a contributor with no ownership into the co-owner track. An ownership multiplier starts up at 1 once a team member makes it into this track. Afterwards the ownership multiplier increases from 1 to 8 over a period of 7 months. Partial co-owners get a partial share of a full co-owner’s revenue slice. (Note: 8 is the number that made sense for the team that this document was initially created for. It would be different for every team). 1. Full co-ownership: all co-owners with an ownership multiplier of 8. Entitled to full share of revenue. Part of the team multisig. Have voting rights for bringing new co-owners in. Have voting rights to initiate removal of an existing co-owner. --- ### Revenue share Revenue is shared by all partial and full co-owners on a biweekly basis. `Revenue share multiplier = (ownership multiplier)/(sum of everyone else’s multiplier) x [minima of(hours worked, full time hours base)]/(full time hours base)` Where `full time hours base` is the base number of worked hours per week for someone to be counted as a full time contributor. --- ### Angels (optional, but works well for mature teams) A group of people acting as advisors (angels) that will collectively be counted as a single full multiplier co-owner with no voting rights. They’ll have to opt-in. List to be reevaluated every 3-6 months. --- ### An Iterative Approach Please note that this model should not be looked at as final structure and might need to continuously evolve and be adapted to a team’s current situation. Stay flexible and don't ossify.