to be fair, if they took investment, it's rarely 99%, cuz investors took a chunk, and a pool of stock gets set aside for future employees, etc. But if the there isn't even any funding yet then 1% is just stupidity.
I get those too. Even if the founders gave away 10-20% to investors, actually building the project under the "management" of inexperienced founders and getting 1% doesn't seem like a fair deal. At this early stage when there is not even a product, hiring a founding engineer is a cheap way to sidestep the need for a technical co-founder who would be entitled for a much larger share of the company. The responsibilities are vast, I can't see that being worth 80-99x less than the contribution the founders make.