Terminology and other uses of “Contributionism”

Clear terminology is important because words such as ownership, contribution and compensation can describe several different relationships. This resource uses the following terms.

Contributionism

The organisational framework described in this resource: a proposal to connect compensation and governance more systematically to contributions while placing limits on the rights created by historical contributions.

The term has also been used in other resources and proposals. Those uses should not be assumed to describe the same model:

Other definitions & usage of the term Contributionism

Organisation

A group of people working together in a structured way towards a shared purpose. An organisation may or may not have a separate legal identity.

Company limited by shares

A legal form in which shareholders’ liability is generally limited to the amount they have agreed to pay for their shares. Limited liability is distinct from the question of how long shares and their associated rights remain outstanding.

Contribution

An input or form of participation that an organisation recognises as relevant to its activities. This resource discusses four broad categories which include labour, capital, consumption and donations. These categories can overlap. For example, a person may donate their labour rather than provide it in exchange for compensation.

Contributor

A person or organisation making a recognised contribution. Being a contributor does not automatically mean they will receive every possible financial or governance right.

Contribution value

An assessment of a contribution’s significance under an organisation’s chosen method. It may reflect agreed rates, costs, performance, impact, risk or other criteria. Contribution value is not assumed to be an objectively measurable quantity in every situation.

Compensation right

An entitlement to receive payment or another agreed benefit. The term covers different kinds of entitlement, including:

• A payment already owed.

• A contingent future payment.

• Participation in an agreed distribution.

• Access to shared benefits.

These categories have different economic and legal consequences and should not be treated as interchangeable.

Governance right

An entitlement to participate in specified decisions. It may include voting, appointing representatives, proposing changes, receiving information or approving particular actions.

Temporary right

A right whose operation is limited by an agreed duration or condition. For clarity, this resource distinguishes:

• Time-limited rights, which end on a specified date.

• Payout-limited rights, which end after a defined financial entitlement has been satisfied.

• Conditional rights, which depend on continuing eligibility or another specified condition.

A payout-limited claim can remain outstanding for a long time. It is therefore not necessarily time-limited.

Contribution unit

A unit used to express participation in an internal allocation or governance formula. A contribution unit is not automatically a legal share, transferable security or ownership interest.

Contribution dividend

A term used in this resource for a distribution associated with eligible contributions.

Its legal classification depends on the arrangement. A payment described here as a contribution dividend might legally be a bonus, profit-sharing payment or another form of compensation.

Ownership

A collection of legally recognised interests and powers, not a single indivisible right.

Ownership may involve rights to income, assets, transfer, exclusion or control. A shareholder generally owns shares in a company, not the company’s individual assets directly.

Core commitment, suggested default and optional mechanism

These terms distinguish different levels of recommendation:

• A core commitment expresses a defining commitment of the proposed framework.

• A suggested default is a starting point that may be changed with justification.

• An optional mechanism is one possible implementation.

• An open question is an issue for which this resource does not yet establish a complete rule.