An Ownership company is a new type of international legal entity with equity management and payroll built in. Every member of a smart company is called a contributor.
An Ownership company does two main things:

1. Generating equity

Smart companies generate equity over time. They do this in exchange for:
  1. 1.
    Work contributions (hours or bonuses logged via the app)
  2. 2.
    Cash contributions (currency paid into company account)
A percentage equity split is calculated by the Ownership Algorithm by comparing the value of everybody’s relative contributions.

2. Buying Back equity

Once a company has cash it can buy equity back from its contributors. The rate must be negotiated between the company and the contributor but at a certain rate a contributor may be forced to sell. See Getting paid for more information about buying and selling equity.