> People will go back to being happy just for being employed
Those who actually know how to do things never face this scenario. It's true for the incompetent though.
In the OP's scenario, we have a real treat. He testifies that this engineer is extremely skilled and a nice guy that is easy to get along with. The only issue of dispute is whether he will agree to be paid vastly below his market rate. The engineer, obviously well employed, acting rationally, is unwilling to do so, and the incompetent start up so-called "entrepreneur" is unwilling to pay market rate for the talent his enterprise needs more than anything else to succeed.
I agree with you a storm is coming. In my view, it is these "entrepreneurs" with nothing to offer who will be happy after the shakeout to be employed at all - making $8 an hour at McDonalds, if they can even manage to hold that down.
The exceptionally talented engineers don't ever have a problem finding employment.
> Want more money? Take less equity. ...
> The Cash and Equity are actually inversely proportional to each other.
Nice rules, but be prepared: Not everyone plays by the rules, and your competition might be among them.
(OTOH, things will get better as the shakeout occurs over the next two years. People will go back to being happy just for being employed.)