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I have occasionally thought that for worker cooperatives, equity that decays over time might be interesting. That is, shares are still liquid and can be held by
by currymj 7y ago
I have occasionally thought that for worker cooperatives, equity that decays over time might be interesting. That is, shares are still liquid and can be held by non-workers and former workers, but they gradually expire. New shares would only be issued to current workers; one could set this rate and the decay rate to get a desired result. No idea if this has been tried or not.
- jdmichal 7y agoI don't know whether it's legally possible to decay equity. Equity is seen as property, so once it's granted you can't just revoke it. You can expire or revoke options, but options themselves don't grant any right other than buying or selling the underlying asset. You could do something like a maturing bond, where it grants payout rights, but that doesn't give equity. You can just plan on a constant level of dilution, ala Bitcoin, but that doesn't ever actually remove previous ownership.