There's certainly a lot of gossip and speculation, but at 30 people there's enough division that it's not automatically obvious that any given person is doing something worthwhile.
Rewards encourage behaviour that earns them.
In a very small startup, you're not going to be able to fake it - but by the time the company's at 30ish people, it's not so clear cut. Who's the most valuable developer in my employer? I'm not on the dev team, so I don't know. They all seem to be doing great work, but I don't know the details.
Do we credit the sales guy for landing this big contract, or the operations guys that made sure their trial system worked, or the devs who wrote their custom integration?
If you're not involved in that project, it's going to be hard to judge whose contributions deserve what share of the reward.
Basically, it's a neat reward system, but I don't think it scales very well at all.
How would that apply to HR, accounting, or legal? Not usually the most loved members of any company and they're routinely involved in bureaucratic compliancy tasks that are more necessary than appreciated.
The point of the system is that for a bonus system to work well the people who give the bonuses need to know about the individual people's contributions. From the company perspective, people who are very helpful to other employees are very valuable and Unicorn rewards this. People who finish big and hard projects are obviously valuable to the entire company and Unicorn rewards this. People who may be solid but are grumpy and don't like to show off their accomplishments... well... If they leave over unicorn and end up being replaced with people who do the things that are rewarded by the system then I'm happy with this outcome.
So far it's been a huge surprise to see where the money goes in Unicorn and I'm thrilled with it.
Do you prefer less-talented, extroverted employees over more-talented, introverted ones?
I don't think it's fair to see our system so black and white. First of all, i'm sure it has problems. Probably many. However, bonus systems all have problems. The traditional top down, performance review style bonus system definitely works best for the extroverts. From what i've seen of unicorn, the people who are most rewarded are the quiet but helpful kinds.
Also, if unicorn helps to get people into the habit of sharing their accomplishments with their friends and coworkers then I think that's worth it all by itself. You have to share your accomplishments. Everyone loves to work with people who do great stuff. But if those people don't tell you about the great stuff they do then you cannot know about it and you cannot partake.
I'm just thinking of doing something similar for my own little shop too...
Originally we thought we will have to protect against bonus trading but instead we simply trust our employees as we should. If two people start trading bonuses then this may be a fireable offense.