====== Dynamic Equity Pricing for Non-Monetary Contributions ======

Measuring non-monetary contributions in **non-monetary terms** involves using qualitative and quantitative methods to evaluate the impact, value, or significance of a contribution without converting it to a dollar amount. Below are different approaches:

===== 1. Point-Based System =====
Assign points to contributions based on effort, skill, or importance.

  * **Effort-Based Points**:  
    - Allocate points for time spent (e.g., 1 point per hour).  
    - Assign higher points for high-value tasks (e.g., 2 points/hour for coding, 1 point/hour for admin work).

  * **Impact-Based Points**:  
    - Set thresholds for specific milestones or achievements.  
    - Example: Completing a prototype = 50 points, securing a partnership = 100 points.

  * **Role-Based Points**:  
    - Assign different weights to roles based on their criticality (e.g., CTO gets more points per contribution than a general manager).

===== 2. Contribution Slices =====
Use "slices" to represent contributions dynamically, similar to the **Slicing Pie Model**:
  - Each contribution (time, effort, or IP) earns slices of equity.
  - The total slices of all contributors determine ownership percentages:
    - Example: If you contribute 100 slices and the team total is 1,000 slices, your ownership is 10%.

===== 3. Relative Contribution Weighting =====
Rank contributions relative to one another and assign weights based on importance:
  - **High Priority**: Critical tasks (e.g., product development) get higher weights (e.g., 3x).
  - **Medium Priority**: Supporting tasks (e.g., operations) get moderate weights (e.g., 2x).
  - **Low Priority**: Non-urgent tasks get lower weights (e.g., 1x).

**Example Calculation**:  
  * Founder A: Writes code (100 hours × 3x) = 300 weight units.  
  * Founder B: Handles accounting (50 hours × 2x) = 100 weight units.  
  * Total Units = 400 → Founder A = 75%, Founder B = 25%.

===== 4. Impact Scoring =====
Rate contributions based on outcomes rather than effort:
  - Define metrics for impact (e.g., client satisfaction, product success, market reach).
  - Use a scoring system:
    - High impact: 10 points
    - Moderate impact: 5 points
    - Low impact: 1 point

**Example**:  
  * Marketing campaign leading to 1,000 sign-ups = 10 points.  
  * Social media post engagement = 3 points.

===== 5. Milestone Achievement =====
Reward stakeholders for reaching specific milestones:
  - **Product Milestones**: Developing an MVP, launching a beta version.
  - **Operational Milestones**: Hiring key employees, setting up processes.
  - **Market Milestones**: Reaching sales targets, securing partnerships.

Ownership adjusts based on milestone achievements, with each milestone carrying specific "ownership credits."

===== 6. Reputation and Influence =====
Track contributions tied to personal influence, visibility, or network impact:
  - Measure growth metrics such as social media followers, press mentions, or event attendance driven by a person.
  - Assign ownership "credits" for such contributions (e.g., each 1,000 followers = 5 ownership credits).

===== 7. Team Voting =====
Allow the team to subjectively vote on contributions based on perceived value:
  - Periodically rank contributions in terms of significance (e.g., voting on top three most valuable tasks or outcomes).
  - Translate rankings into ownership shares (e.g., first place = 50%, second = 30%, third = 20%).

===== 8. Non-Monetary KPIs (Key Performance Indicators) =====
Define specific, measurable KPIs for contributions:
  * **Technical KPIs**: Number of features developed, bugs fixed, or designs completed.  
  * **Business KPIs**: Leads generated, partnerships secured, or contracts negotiated.  
  * **Operational KPIs**: Processes improved, training completed, or team performance enhanced.

Ownership adjusts as contributors meet or exceed their KPIs.

===== 9. Time Allocation =====
Measure contributions by time spent relative to total effort:
  - Example: If Founder A works 30 hours/week and Founder B works 20 hours/week, their ownership percentages could be:
    - Founder A: **30 ÷ (30 + 20) = 60%**
    - Founder B: **20 ÷ (30 + 20) = 40%**

===== 10. Collaborative Feedback System =====
Incorporate peer assessments to evaluate non-monetary contributions:
  - Team members score each other based on factors like:
    - Quality of work.
    - Level of innovation.
    - Impact on team success.
  - Scores are averaged and converted into equity shares.

===== Example Implementation =====
Let’s say a startup has three founders with the following contributions:
  * **Founder A**: Developed the product prototype (200 points).  
  * **Founder B**: Secured a key investor (150 points).  
  * **Founder C**: Created the brand and marketing strategy (100 points).

**Total Points = 450**  
  - Founder A: **200 ÷ 450 = 44.4%**  
  - Founder B: **150 ÷ 450 = 33.3%**  
  - Founder C: **100 ÷ 450 = 22.2%**

This system ensures non-monetary contributions are valued based on tangible effort and impact, without requiring conversion to monetary terms.