[cjlars]

And when an owner wants to raise liquidity? They'll take a hit due to the cliff issue (voting rights have value and you destroy voting rights by selling). So any company with tenured voting rights will have created a system that forces owners to sell shares at a discount to their current value. And because they can't sell for more value than they get from holding, they would tend to prefer value-destroying and excessive short term cash distributions up and until the point where the damage from those distributions equalizes with the value destroyed at sale.

I'm sure some economist smarter than me could formalize the issue, but unless the cliff issue is solved, this sort of ownership scheme will not result in shareholders maximizing long term value.

A dominant founder-CEO could mitigate or overpower the incentives described above, but my guess is that any company that successfully gets of the ground using this scheme will replace their tenured shares with ordinary common shares at some point.