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I'm a bit confused as to how this works in an employment scenario where the contractual terms aren't fixed.

How is salary negotiated? What happens over time - do you just become discrete employees? What about internal promotion - does it just not happen?

I would find it incredibly difficult to get together with friends and decide 'right, i guess we're all worth X each then, let's go for that'.

What if some members of the team are more senior than others? What if members specialize in areas with differing market rates? It just feels somewhat clumsy.

Great for the situation where everyone is a clone. Shitty in real life where some people are clearly better than others.

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