San Francisco Start-Up Floats Plan to Incentive Employees with Digital Currency
In addition to regular wages, drivers and pizza makers would earn “fragments” for their work.
From its proposed crytocurrency plan for incentivizing employees to its unusual branding, Pythagoras Pizza is a unique newcomer to the pizza industry, claiming to bake, box and deliver their pizzas in under 20 minutes.
The CEO of pizza-on-demand startup Pythagoras Pizza has developed his own version of Bitcoins to incentivize employees and encourage a sense of ownership, reports the Business Insider.
Evan Kuo hopes to create his own digital currency, called “fragments,” that would be linked to the valuation of the San Francisco-based pizza company. For every pizza baked and delivered, chefs and drivers earn a certain number of fragments. Customers can also earn fragments by referring their friends to Pythagoras Pizza.
The plan envisions a “tokenized network” consisting of “users, influencers, drivers and food service professionals,” all of whom can participate in Pythagoras Pizza’s success. In a blog, the company says its goal is to “design a digitally scalable incentive structure that allows service-providing members of their network to enjoy the benefits of both near-term liquidity and long-term alignment with the company’s success."
“The better Pythagoras’ business performs, the more each fragment will be worth,” the Business Insider explains. “It means that whether you work for Pythagoras for two weeks or two years, you’re earning some kind of stake in the company’s future performance, commensurate with your contribution.”
While they presumably can be redeemed for cash, fragments are not the same as company shares. Employees do not earn equity for their work. “Kuo plans to give the fragments a base value by pre-selling tokens to select U.S.-based investors,” Business Insider notes. “Those tokens’ value will then be tied to the pizza business’ monthly revenue. The better the business does, the higher the value of each fragment.”
“This is an exciting and hopeful time,” Kuo states in the blog, adding that his strategy for “tokenization” could “usher in a new era of economic mobility for working-class Americans.”