I've been running a co-op for about 4 years now and I really want to expand the model since it seems to be working really well. Turns out giving everyone in the company ownership and an equal say in what we do with our profits (including simply redistributing it to everyone) results in ridiculously hard working people. I'm trying to leverage this into making our own internal product development happen but am kinda stuck coming up with ideas.

Anyway someone interviewed me recently and was asking, "why don't more companies form as co-ops? What's the hidden downsides?" I was surprised that there was this suspicion that there must be some sneaky hidden downside, when in fact co-ops are more sustainable, have lower turnover, higher profit per person, and happier employees. There's no actual downside, it's literally all upsides - oh, except for the fact that there's no way to get obscenely rich as the owner of a co-op. That's it, that's the entire reason. People with capital start companies so they can exploit labor to get even more capital, and only people with capital have enough time and money to start companies, so thus there's not many co-ops.

> replace it with a grassroots up system.

This is basically how Marx wrote about Communism, and how Kropotkin wrote about Anarchist Communism. There have been many... interpretations... of their work in practice. Spanish anarchist syndicalism actually worked remarkably well, they had nearly their entire economy syndicalized before they were betrayed by the communists and then killed en masse by the fascists.