X was working part-time on an idea and after about a year and a basic demo in hand, he talked to two potential people (A and B) who would become co-founders but would work part-time just like X. The split that they talked about was 20% for A and 30% for B (two years vesting) and X retained 50%.
After about a year they worked and build a MVP and have potential customers who are interested in using this. But for some really weird reason A and X can not continue working on it (they are not leaving by choice), leaving it to only B. X has completed almost two years and A and B have completed about a year.
Given the two year vesting schedule, X has 50% and A has 10% (due to vesting) and B has 15% (he will get the next 15% in the coming year).
How do they now carry things forward? How should B's work be valued for each that we works on this project. There is a potential plan to bring developers / business guys as and when needed.
The proposal: For each year that B works on this (part-time), he gets 15%, 12.5%, 10%, 7.5% and so on %. The idea is that the more the contribution from others including B, the more the share they get and the original % of X and A keeps going down. This is a way to penalize X and A because they are not working on it any more. For all the others joining the team, it would be a 2 year vesting for whatever share they get (until company is ready to pay salary)
As an example:
P 0.00 15.00 12.50 10.00 07.50 <- extra % for B
Y 01.00 02.00 03.00 04.00 05.00 <- Year
B 30.00 40.50 47.94 53.14 56.66 <- % for B
X 50.00 42.50 37.19 33.47 30.96 <- % for X
A 20.00 17.00 14.88 13.39 12.38 <- % for A
What do you think of this proposal? Is it reasonable for B to work on these terms, given his past contribution is same as present