"We have an internal structure called the "Grunt Fund" that I would like to go over with you guys which is equity based on time and money put into the business. "
Is that a valid thing?
You should be thinking now about how the exit scenarios might play out. How would it affect your equity and payout? What if the company succeeds? What if it fails or becomes a zombie? What happens if you leave after a year (whether it's your choice or not)?
From the limited information you've provided, my guy says that all stock granted (except in return for actual cash investments) should be subject to a vesting schedule. You may want to search for something like 'founder stock should be subject to vesting' and read up on vesting, cliffs etc.