View source for User Share Fraction

The '''User Share Fraction''' is the share of [[Surplus]] paid to [[User Shareholders]].

In early versions of FairShares, the User Share Fraction is:

* 0.5 in User and Worker Co-operatives

* 0.35 in Social Enterprises and Social Co-operatives

From V3.0 onwards, the fraction is set during the creation of rules in the [https://sites.google.com/view/fairshares FairShares Rules Generator], and this provides for a range of choices from 0.30 to 0.45.  

In associations, this fraction (as is the case with Founder and Labour Share Fractions) determines the share of surplus User Members (as a group) can allocate to social objects without board approval.

The V3.0 rules generator does not permit rules to specify more than 0.4 for [[Investor Shareholders]], and a sets the minimum payout to [[Labour Member|Labour]] and [[User Member]]s at 60%. Typically, 70% or higher is paid out to people active in FairShares companies, and 75% of higher in FairShares cooperatives.

The total amount paid out to [[User Shareholders]] is called the [[User Share]] of [[Surplus]].


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