[kevinstubbs]

That's a fair criticism. You're right that with this system of paying somebody as close to their value as possible, bonuses and raises wouldn't make sense.

It did make me realize though, that there is a risk of having a downraise, if the value of what you produced in the past cycle is less than the one before that. Even with a hypothetical way to accurately estimate the value (unless we're averaging), having a downraise or even the risk of it, is a big hit against this system because of the stress it would create for some, imo. Additionally, for some people, there may not enough incentive to continue working in the current cycle, if they feel they have already delivered as much value as they feel they need. Some people would be content delivering 100k of value for instance, wherever that is in the cycle, while some would be trying to reach new heights.