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I like your method. A 1h task usually is done in two days after the start anyway due to like testing or reviews or what ever.

The main feuture is that you can report more work than there are hours of work. E.g. complete 8 days of work in two days by doing 4 2-day tasks.

I find it way easier to estimate when something is done rather than how much time it will take to do.

This is exactly my hack too! Especially when there are outside dependencies that can easily stall your progress.

This sounds about right. I worked with a guy who never gave an estimate more than "an hour" or "I can bang this out in a weekend". Of course quite often he'd end up working on the feature for 3 months...