[HN Gopher] Financial situation of the Matrix.org Foundation
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       Financial situation of the Matrix.org Foundation
        
       Author : alohapersona3
       Score  : 100 points
       Date   : 2023-11-19 19:26 UTC (3 hours ago)
        
 (HTM) web link (github.com)
 (TXT) w3m dump (github.com)
        
       | jMyles wrote:
       | Nothing jumps out that immediately causes me consternation as
       | either an occasional donor or an (even more) occasional user,
       | except perhaps the extreme delays in responses from foundation
       | leadership.
       | 
       | I broadly like matrix best of the chat/comms frameworks, but I
       | keep turning back to signal, telegram, and whatsapp because of
       | network effects. So, if shifting some personal efforts to the
       | for-profit org makes sense to core devs... I can't really fault
       | them.
       | 
       | Cheers to alohapersona for keeping the fire going on this issue.
        
       | COGlory wrote:
       | OK? What do we expect them to do with the money, exactly? As a
       | donor, I would expect they fund the development of Matrix, which
       | I believe Element is doing?
        
         | zamalek wrote:
         | EMS (New Vector Ltd.) is not the same thing as Element. It is
         | the first-party SAAS offering of Element/Matrix. It would be
         | like Terraform accepting donations, and paying Hashicorp.
         | 
         | That being said, it's completely plausible that this is salary
         | for development time. Being tight-lipped about it is suspicious
         | though.
        
         | alohapersona3 wrote:
         | Luckily, it doesn't matter what individuals expect. There is
         | written documentation on what the foundation is supposed to do
         | or not to do: https://github.com/matrix-org/matrix-spec-
         | proposals/blob/mai...
         | 
         | Notably, "Code Core Team members must arrange their own funding
         | for their time", which I understand as such that the Foundation
         | does not pay directly the developers (same as other standards
         | organizations like IETF). That said, if it was decided that
         | developers get paid by Matrix.org Foundation for developing
         | Matrix.org clients and servers, I wonder how this process
         | works, given that I highly doubt that developers of Conduit,
         | Fractal or Quaternion received any of the funds of Matrix.org
         | foundation.
         | 
         | Main tasks of Matrix.org Foundation is maintaining the spec,
         | documentation, owning IP, promotion and the matrix.org home
         | server. The home server is "generously hosted" by UpCloud (i.e.
         | is not using New Vector EMS), at least according to the
         | matrix.org website.
         | 
         | Looking again at MSC1779, I noticed it says that one function
         | of The Matrix.org Foundation is "Owns the copyright of the
         | reference implementations of Matrix (i.e. everything in
         | https://github.com/matrix-org). By assigning copyright to the
         | Foundation, it's protected against New Vector ever being
         | tempted to relicense it." That protection apparently wasn't
         | very effective, but also notably, New Vector and their
         | leadership clearly have shown to not stand behind the goals of
         | the Foundation. As the leadership of New Vector is also part of
         | the leadership of the Foundation, I see some huge potential for
         | COI here.
        
       | psYchotic wrote:
       | I have nothing interesting to contribute here, but I want to
       | express my thanks to alohapersona3 for trying to hold the Matrix
       | Foundation accountable!
        
       | Laaas wrote:
       | I assume they're paying for a service, probably developing
       | Matrix?
       | 
       | I would rather have them use the small amount of money they have
       | on developing Matrix rather than explaining where each coin went.
       | 
       | This comment seems relevant: https://github.com/matrix-
       | org/matrix-spec/issues/571#issueco...
        
         | makomk wrote:
         | This reply about how in reality there's very little benefit to
         | the community from the copyright being assigned to the
         | foundation is a lot more perceptive than that comment,
         | especially now that exactly what it foresaw has come to pass:
         | https://github.com/matrix-org/matrix-spec/issues/571#issueco...
        
           | Laaas wrote:
           | What do you mean it has come to pass?
        
             | makomk wrote:
             | The server-side Matrix code developed by Element is no
             | longer going to be released under the Apache 2 license.
             | It's going to be dual-licensed AGPL/proprietary from now on
             | and released from Element's own GitHub repositories with a
             | CLA requiring copyright assignment to Element so they can
             | use it in the proprietary version, and the foundation is
             | dropping all development on the Apache 2 version since
             | they're not interested in competing with Element. This was
             | specifically to obstruct other companies from providing
             | Matrix-based enterprise offerings. There was an
             | announcement about it which made it onto HN a while back:
             | https://news.ycombinator.com/item?id=38162275
        
               | danShumway wrote:
               | What's interesting about this is that if the CLA didn't
               | exist I would entirely support this move. The AGPL is
               | (imo) a better license for a keeping a hosted project
               | public and Open, it's good for things being built on top
               | of Matrix's server implementation to be openly licensed.
               | And the company is right that the Apache 2 license would
               | not prevent them from taking the code in a proprietary
               | direction later; Apache 2 allows that.
               | 
               | But with a CLA, it becomes much easier for their code to
               | move towards source-available.
               | 
               | The thing is, a GPL or AGPL license _without_ a CLA would
               | actually be a reasonable defense against closing down the
               | software in the future, since it would block Element from
               | being relicensed to something more restrictive without
               | the permission of the copyright holders. Even if there is
               | a legitimate need to sell exceptions, a CLA that gave the
               | company a _limited_ right to sell specific exceptions
               | would be better than full copyright assignment and would
               | actually increase my trust in the project rather than
               | worrying me.
        
               | brunoqc wrote:
               | Yeah. I got burned by a CLA before. Never again.
        
               | dmacvicar wrote:
               | NextCloud does exactly this: AGPL, no CLA.
               | 
               | https://github.com/nextcloud/server#contribution-
               | guidelines-
               | 
               | >Nextcloud doesn't require a CLA (Contributor License
               | Agreement). The copyright belongs to all the individual
               | contributors. Therefore we recommend that every
               | contributor adds the following line to the header of a
               | file if they changed it substantially: > >@copyright
               | Copyright (c) <year>, <your name> (<your email address>)
        
               | grey_earthling wrote:
               | Element requiring a CLA has only 1 practical effect:
               | Element are effectively saying that in _their_ repo of
               | Synapse /Dendrite, they won't integrate any copyleft code
               | they can't relicense.
               | 
               | Other organisations could still choose to maintain a repo
               | of Synapse/Dendrite that integrates _any_ AGPL code,
               | including all code released by Element.
               | 
               | That might be a better upstream than Element! -- but it
               | would take work. For it to happen, someone would need to
               | do and/or fund that work.
        
               | alohapersona3 wrote:
               | If next there is "Synapse Pro" that is proprietary and
               | sold by Element and includes features not present in the
               | open source version of Synapse but relevant to company or
               | government use of Matrix, the AGPL-only version of
               | Synapse will lack those features. This will hinder
               | companies that (potentially) require "Synapse
               | Pro"-features from contributing to the AGPL-only version
               | of Synapse. We have seen this happen before.
        
       | joshsimmons wrote:
       | Thanks for the tag on the GitHub issue and for being a persistent
       | advocate for transparency. Transparency is something we should
       | expect from any open source foundation, and I am committed to
       | delivering on that as the Foundation's first Managing Director.
       | 
       | That said, it is the weekend :-) I'm happy to address all of the
       | concerns and questions, and you'll hear more from me tomorrow -
       | both here and on GitHub.
        
         | ajdude wrote:
         | I'm very curious to see this point addressed:
         | 
         | > According to the statement, the book value of cryptocurrency
         | assets did not change between Oct 31, 2021 and Oct 31, 2022.
         | This is questionable, to say it mild, given that there have
         | been incoming cryptocurrency transactions publicly visible on
         | the respective published blockchain addresses of The Matrix.org
         | Foundation.
         | 
         | https://github.com/matrix-org/matrix-spec/issues/571#issueco...
        
       | joemazerino wrote:
       | The owing balance of Vector is concerning because the loan's
       | payment, interest or default has to be marked in the books.
       | 
       | People think running a non profit is easier but its much more
       | difficult considering external, anonymous stakeholders.
        
       | Zetobal wrote:
       | I am following the thread for years now and their financials were
       | always a shitshow. I believe they never released anything on time
       | or without the community begging for it. Well, except some fluff
       | blog post at the end of the year without real data. I love Matrix
       | but it's a fishy foundation. With this and Element not releasing
       | server code under apache 2 anymore, it looks more and more like
       | Element is going for entshitification.
       | 
       | Edit: Well, Josh is here so he will again start to deflect for
       | some weeks and hope everyone will just forget about it until the
       | next merry go round. _sic_
        
         | vilunov wrote:
         | > Well, Josh is here so he will again start to deflect for some
         | weeks and hope everyone will just forget about it until the
         | next merry go round
         | 
         | This has been my experience with how Matrix handles critique in
         | general, e.g. the response to "why not matrix?" which left me
         | disappointed. Looking at this, and also at low quality of the
         | reference clients and servers, over-engineered protocols and
         | the poor UX in general it does not convince me that Matrix is a
         | good solution to consider.
        
           | tentacleuno wrote:
           | Why not Matrix? Here's one reason: it has incredibly hard-to-
           | debug edge cases, and plenty of bugs. One of my favourites is
           | the one where people are kicked out of your room at random,
           | which was reported a year ago[0]. It wasn't fixed, however,
           | because the head of the Matrix foundation (Matthew) didn't
           | seem to like the issue being posted on Twitter.
           | 
           | The reporter took down the tweet, and it's still now
           | effectively abandoned (despite it still being an issue; I've
           | spoken to quite a few mods about it). This is honestly really
           | disappointing behaviour from a platform owner.
           | 
           | [0]: https://github.com/matrix-org/synapse/issues/14481
        
             | Arathorn wrote:
             | wow, the pile-on is real tonight.
             | 
             | I suggested that GrapheneOS stopped enumerating potential
             | ways to attack Matrix rooms on Twitter if they actually
             | wanted to discourage attacks.
             | 
             | Meanwhile, that issue has not remotely been abandoned, and
             | has continued to be worked on in private (given the risk it
             | might have security impact) - although as it's a rare edge
             | case without a known security impact, it's competing with a
             | lot of the other work we do to support Matrix, hence slow
             | progress; especially with highly constrained funding.
        
               | meepmorp wrote:
               | > wow, the pile-on is real tonight.
               | 
               | I know it's incredibly hard to not take it personally
               | when people call your baby ugly, but you're not helping
               | things by being defensive. People seem to have issues
               | with how you (as a company) handle bugs and criticism,
               | and while it may not seem fair or accurate, at very
               | least, it's likely that your company's responses
               | contribute to the perception.
               | 
               | If nothing else, it points out a communication problem.
        
               | tentacleuno wrote:
               | > wow, the pile-on is real tonight.
               | 
               | My intent isn't to "pile-on"; it's to provide insight
               | into the issues people have with Matrix. I understand
               | that it's your creation, but judging by this and the
               | GitHub thread, it seems like you get quite defensive in
               | these situations. Ultimately, these are valid criticisms
               | of the platform; people aren't personally attacking you
               | or the project. Personally I commend what you've created.
               | 
               | > I suggested that GrapheneOS stopped enumerating
               | potential ways to attack Matrix rooms on Twitter if they
               | actually wanted to discourage attacks.
               | 
               | Well, the issue was posted above. The Graphene guy posted
               | it on Twitter, and by doing so you claimed he "slagged
               | [you] off"[0].
               | 
               | > Meanwhile, that issue has not remotely been abandoned,
               | and has continued to be worked on in private (given the
               | risk it might have security impact) - although as it's a
               | rare edge case without a known security impact, it's
               | competing with a lot of the other work we do to support
               | Matrix, hence slow progress; especially with highly
               | constrained funding.
               | 
               | This is the part I don't understand. If you're working on
               | it in private, you acknowledge it may be a security risk
               | (plus your use of the word "attack"), but you've also de-
               | prioritized it because it's not a security risk?
               | 
               | [0]: "what the hell is this? We have burnt a bunch of
               | time investigating this and trying to help you on this
               | today, and in return we get slagged off on twitter?!"
               | https://github.com/matrix-
               | org/synapse/issues/14481#issuecomm...
        
         | joshsimmons wrote:
         | I get that we're operating in a low trust environment, and you
         | don't yet have any reason to trust me.
         | 
         | I will say this: I'm not here to carry water for past
         | performance. I _am_ here to build the foundation into the
         | organization the community deserves, and I have a track record
         | when it comes to making organizations more responsive to the
         | communities they serve.
         | 
         | Not only will I respond to the questions and concerns, I am
         | actually working on systemic solutions that will provide
         | transparency as a matter of course.
         | 
         | Of course, these are just words for now. Judge me by my actions
         | in the days and months ahead, and know that I do aim to earn
         | your trust. Edited to add: *and I aim to build the foundation
         | into the kind of organization that, by merit of its rules,
         | processes, and community representation in governance, doesn't
         | require us to be trusting in the first place.
        
           | Zetobal wrote:
           | I'll believe you when I see more than empty phrases but tbh I
           | am over hyping up Element/Matrix, so do whatever you want.
        
             | VoxPelli wrote:
             | Josh has quite the track record from elsewhere, having eg
             | served as president for the very Open Source Initiative
             | itself, so I do think it's fair to give him time here
        
           | pierat wrote:
           | Put up (the financials and data), or shut up.
        
             | gloryjulio wrote:
             | Agree with that. Upvoted for the visibility. This issue has
             | going on for years. No more excuses
        
       | dang wrote:
       | " _Please use the original title, unless it is misleading or
       | linkbait; don 't editorialize._" -
       | https://news.ycombinator.com/newsguidelines.html
       | 
       | If you want to say what you think is important about an article,
       | that's fine, but do it by adding a comment to the thread. Then
       | your view will be on a level playing field with everyone else's:
       | https://hn.algolia.com/?dateRange=all&page=0&prefix=false&so...
       | 
       | (Submitted title was "Non-profit Matrix.org Foundation seems to
       | be moving funds to for-profit Element")
        
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       (page generated 2023-11-19 23:02 UTC)