this is the open core model, it works well for things like GitLab (as far as I know)

and in effect GitLab is doing a BSL-like thing by after a few years they release features to the free tier

but it rarely works if you need to decline contribution from people who would eat into your profit margins. I think ElasticSearch had this problem (and the community basically ended up with a few forks, because people sent the patches for security features that were in the enterprise version, and to no one's surprise they did not get merged ...)

so, I guess it works if there's a huuuge scope with plenty of things to contribute, to shoot for the moon together, without hurting the business side too much.