Motion Hash to place in Nu client: e0bd84ba5907260b9ca6ba45ed9a7ce6aae11e08
This motion is stored on GitHub. To verify the RIPEMD-160 hash, the GitHub version should be copied using a RIPEMD-160 calculator like Browserling. The text is included below for convenience.
Stock options are a common way startups reward key players to stay as they grow. Nu’s key players (myself, Esko, Mike, woolly_sammoth, and Cybnate) are very important to its success. We need to retain them. One of the best ways to do this is to give them stock options. I have the right to offer stock options to others, just as I am authorized to give compensation to others, but I need direct shareholder authorization to receive them myself. Accordingly, this motion is primarily being advanced to authorize my own NSR options. However, the motion will also serve to clarify publicly how the other key players are to receive their options.
Options have a number of key features that make them attractive in our case: they don’t cost anything if the organization doesn’t do well and the asset price does not increase. The cost is in proportion to the success of the organization: it only has to pay a lot if it is very successfully, which is precisely when it can afford to pay a lot. They persuade key players to stay once the options become favorably priced due to asset appreciation. Once that happens, option recipients can’t leave Nu without leaving a lot of money on the table, which they are unlikely to do. I am trying to set up a multisig group, and these options will be helpful in ensuring signers have a stake.
NuShare options will be granted in the following amounts:
Phoenix 5200 voting NSR (52 million NSR)
Esko Esko 2800 voting NSR (28 million NSR)
Woolly_Sammoth 1600 voting NSR (16 million NSR)
Mike 1200 voting NSR (12 million NSR
Cybnate 600 voting NSR (6 milllion NSR)
Options will vest over a 4 year period, 25% per year each December 4th. Options will expire December 3rd, 2022. To remain eligible for the them, full time workers Esko and Woolly_Sammoth must bill at least 300 hours each quarter. Mike and myself must bill at least 60 hours each quarter to remain eligible. Cybnate must continue to actively build and support NuDroid, or bill at least 60 hours per quarter.
The time for option pricing is the same for everyone: we will take the midpoint of the range of pricing for NSR on December 4th, 2017 UTC. If pricing seems irregular on that day (manipulated due to the option pricing, then the average pricing of November 27, December 4th and December 11th will be used.
Exercize of options: 25% of options granted to each person will become available for exercise on December 4th each year, from 2018 until 2021. All these options expire on December 3rd 2022. Cash payment for the NSR at option price need not be made. If cash payment at option price is not made, we will use the formula ((exercisePrice – optionPrice) / exercisePrice) as the amount of NSR they are granted. By way of example, if the option price is $20 per voting NSR, and the decision to exercise is made when voting NSR is $100, the recipient can elect to receive 0.8 voting NSR for each option ((100 – 20) / 100), using the formula ((exercisePrice – optionPrice) / exercisePrice) as the amount of NSR they are to granted.
It is expected that Liquidity Operations NSR will be used to allow option exercise.