News for hackers. Stuff that matters.
Re:Non-profit Matrix.org Foundation seems to be moving funds... by COGlory on Sunday November 19, 2023 @03:42PM (#38337674)
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?
Re:Non-profit Matrix.org Foundation seems to be moving funds... by alohapersona3 on Sunday November 19, 2023 @04:26PM (#38338260)
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.

Re:Non-profit Matrix.org Foundation seems to be moving funds... by EarlKing on Sunday November 19, 2023 @06:20PM (#38339686)
Without looking at how this organization works, let me clarify: a 501(c)(3) cannot be paying for software development insofar as this constitutes Product Development. Product Development is outside the scope of charitable work and, if caught, would open them up to back taxes on those 'charitable' contributions plus fines. This is not something that applies just to Matrix, but to the Free Software Foundation for that matter. Not one fucking dime you give them ever goes to software development, and the fact that they don't make this clear upfront given the obvious misunderstanding on the part of the public and what they think they're funding, is fraudulent.

TL;DR Donations to 501(c)(3)'s managing open source projects might as well be lit on fire because they do not and can not go to software development.

Re:Non-profit Matrix.org Foundation seems to be moving funds... by KomoD on Sunday November 19, 2023 @09:00PM (#38341227)
> This is not something that applies just to Matrix

FYI The Matrix foundation is not a 501(c)(3), it's not even registered in the US.

Re:Non-profit Matrix.org Foundation seems to be moving funds... by EarlKing on Monday November 20, 2023 @12:53AM (#38343020)
A quick search turned up a registration for them in the UK? Is this them?[1] And if so..... where is any of this even documented on the matrix.org website? Lastly, use of a CIC is a horrible idea for precisely the sort of shady shit we're seeing here.

[1] https://find-and-update.company-information.service.gov.uk/c...

Re:Non-profit Matrix.org Foundation seems to be moving funds... by KomoD on Monday November 20, 2023 @08:18AM (#38347522)
That is them, yes. On the "About" page under "Legal Details".
Re:Non-profit Matrix.org Foundation seems to be moving funds... by justin66 on Sunday November 19, 2023 @08:52PM (#38341163)
Who are you? What is the Matrix.org foundation to you?
Re:Non-profit Matrix.org Foundation seems to be moving funds... by alohapersona3 on Sunday November 19, 2023 @11:12PM (#38342162)
Why would it be relevant, who I am?

I am interested in the future of Matrix as an open, decentralized protocol. I increasingly see a risk in the behavior of New Vector as the VC-funded effective owner of the Matrix protocol. To me, the Matrix.org Foundation was supposed to be the organization that saves the community from the interests of VCs.

Over recent years I got the feeling the foundation became mostly a fake nonprofit organization to attract donations from the community while the for-profit company attracts VC money. The foundation did not manage to properly include the community in any of its official positions (Board, Spec Team) in 5 years, clearly showing that this is not in its interest.

For Matrix to be a success, we need to design it such that there can be contributions from others than New Vector. This is not happening and because of that, it's very likely that as soon as New Vector is running out of money, Matrix is going to collapse. Having at least a bunch of money in the foundation would reduce that risk, but New Vector seems to even be siphoning off that.

Re:Non-profit Matrix.org Foundation seems to be moving funds... by eredengrin on Monday November 20, 2023 @03:48AM (#38344938)
> For Matrix to be a success, we need to design it such that there can be contributions from others than New Vector.

What exactly do you think is stopping such contributions? It seems to me there is plenty of room for community involvement, it is simply a matter of the community doing it (which many have been of course, but there is also always more work to do and free skilled labor is not easy to come by in large quantities).

> Having at least a bunch of money in the foundation would reduce that risk, but New Vector seems to even be siphoning off that.

I'm not following. How does the foundation having money reduce this risk? In particular, how do you think the foundation would help prevent the "collapse" of matrix if they had more funding? If you ask me I'd think that funding developers would be a good way to do that, and as the primary force behind the reference implementations, wouldn't funding Element/New Vector be a good way to do that? Although I was under the impression that resources primarily flowed the opposite way, from Element to the Foundation, but I haven't kept close track so could be wrong...

In any case, I'd echo the original sentiment of this thread - as someone who joined their patreon back when it first started and still haven't left it, I don't really mind if they haven't documented for the public where exactly every penny went as long as it's going towards the people developing matrix. Yeah maybe not ideal, but given that the foundation has very little money to begin with I have a tough time faulting it. It would change things if they were bringing in millions, but when the community patreon is not even bringing in enough to hire a full time minimum wage employee in California, much less a developer, accountant, or lawyer, documenting the expenditure of a few pennies is pretty low on my priority list.

Re:Non-profit Matrix.org Foundation seems to be moving funds... by alohapersona3 on Monday November 20, 2023 @08:03AM (#38347377)
> What exactly do you think is stopping such contributions?

2/5 foundation board members are from New Vector. At least another 2/5 foundation board members have strong personal ties with New Vector. 7/8 spec team members are from New Vector. In other words: Nothing at the Matrix Foundation happens without consent from New Vector. If New Vector does not like a competitor, they can block them from participating in the standard (making new features of them standards non-compliant) and then block them from using the Matrix brand or claiming to be Matrix compatible. As a company, you'd be stupid to build your business around being a competitor to New Vector if they can easily throw you out.

That was the whole purpose of the foundation: to manage the spec and the brand independent of New Vector, so that others can contribute.

> I'm not following. How does the foundation having money reduce this risk?

It's much easier to do anything with money. If new structures need to be created in the foundation after a collapse of New Vector, it is way easier to do so if you have money.

> It would change things if they were bringing in millions, but when the community patreon is not even bringing in enough to hire a full time minimum wage employee in California, much less a developer, accountant, or lawyer, documenting the expenditure of a few pennies is pretty low on my priority list.

As I wrote in the linked thread, their total assets exceeded a million dollars end of 2021. That should be enough for a full-time hire with competitive compensation for a few years, especially if that hire is not in California (why the hack hire in California when you don't need to?). Also, even small amounts of money can be very attractive to open source contributors, they're already doing it without any compensation, but just giving them a thousand bucks a month will make them more likely to continue contributing in their spare time. You don't need it to be a full time hire to be effective.

Re:Non-profit Matrix.org Foundation seems to be moving funds... by Arathorn on Monday November 20, 2023 @12:22PM (#38350960)
> At least another 2/5 foundation board members have strong personal ties with New Vector

Nope. Neither Ross, Jon or Jutta have 'strong personal ties' with NV. We had met Ross twice(?) before asking him to join (based on his qualifications as a decentralisation-focused lawyer and casual Matrix user). Jutta we'd met once (and was asked based on her qualifications as CEO of a decentralisation-focused company which used Matrix). Jon had supervised me on an undergrad project 20 years ago (and not been in contact since), and was asked to join on the basis of his qualifications as an academic expert in decentralisation. We recruited experts to the board who we were familiar with from the industry, and have asked them to put their professional reputation on the line to ensure that Amandine & myself (as founders of Matrix, and later Element) keep the foundation on mission.

> 7/8 spec team members are from New Vector.

This is only because 3 of the 8 were independent when they joined the team, but subsequently ended up working at NV so they could be paid to work on the Matrix core team as their day job. When performing their SCT duties they do so as independent individuals rather than Element employees, and do a great job of separating the two.

> If New Vector does not like a competitor, they can block them from participating in the standard (making new features of them standards non-compliant) and then block them from using the Matrix brand or claiming to be Matrix compatible.

If that happened, the Guardians (and in future the Governing Board) would step in to fix the abuse. It's a checks & balances system.

> That should be enough for a full-time hire with competitive compensation for a few years, especially if that hire is not in California (why the hack hire in California when you don't need to?)

I am very glad that the Foundation hired a world-class Managing Director in the form of Josh, precisely to address the issues you've been highlighting, with a pretty much unique history and qualifications for managing non-profit open source foundations. That's why the hack we hired in California :)

Re:Non-profit Matrix.org Foundation seems to be moving funds... by solarkraft on Monday November 20, 2023 @06:46PM (#38356700)
Thank you for this response! If you're "faking being calm & anodyne" here, I think it's working and benefiting the response's quality.
Re:Non-profit Matrix.org Foundation seems to be moving funds... by yjftsjthsd-h on Sunday November 19, 2023 @11:24PM (#38342235)
Who cares? They made a coherent argument and cited sources; their identity seems irrelevant.
Re:Non-profit Matrix.org Foundation seems to be moving funds... by zamalek on Sunday November 19, 2023 @03:47PM (#38337736)
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.

Re:Non-profit Matrix.org Foundation seems to be moving funds... by joshsimmons on Monday November 20, 2023 @08:20PM (#38357515)
Thank you for being a donor! Naturally, you can expect us to eventually publish an annual report that details revenue, expenses, and programmatic activities. At a high level, the payments to Element includes administrative services (accounting, legal, etc), operation of the matrix.org homeserver, and secondment of several personnel whose responsibilities include advocacy, program management, standards work, and trust and safety. The MSA also includes provisions for the Foundation to reimburse Element for any bills they pay on our behalf.

In terms of funding development, the Foundation's focus has mostly been on building open source trust and safety tooling since that is a gap that others haven't addressed.