Yeah, I think the difference is between "they have all the upside" and "they have only upside". You shouldn't agree to either of those situations — they should

Yeah, I think the difference is between "they have all the upside" and "they have only upside". You shouldn't agree to either of those situations — they should be putting in sweat equity alongside you. But there's a big difference between them, since all founders end up with some upside — if you don't, then you're employee #1 (and even then, you're probably still getting a couple percent).