After a successful 2024 with a lot to be proud of, and a Matrix Conference that brought our community together to celebrate 10 years of Matrix, we step into 2025 with a light budget and a mighty team poised to make the most of it!
Our priorities remain to make Matrix a safer network, keep growing the ecosystem, make the most of our Governing Board, and drive a fruitful and friendly collaboration across all actors.
However, whether we will manage to get there is not fully a given.
🔗The Foundation is key to the success of Matrix
The Matrix.org Foundation has gone from depending entirely on Element, the company set up by the creators of Matrix, to having half of its budget covered by its 11 funding members, which is a great success on the road to financial independence! However half of the budget being covered means half of it isn’t. Or in other words: the Foundation is not yet sustainable, despite running on the strictest possible budget, and is burning through its (relatively small) reserves. And we are at the point where the end of the road is in sight.
Why does it matter?
The Foundation has a clear mission:
The Matrix.org Foundation exists to act as a neutral custodian for Matrix and to nurture it as efficiently as possible as a single unfragmented standard, for the greater benefit of the whole ecosystem, not benefiting or privileging any single player or subset of players.
Without the Foundation and its programs, the Matrix protocol itself faces existential threats:
- Without Trust & Safety efforts, bad actors and communities would proliferate on the network and make it unlivable for the rest.
- Without a canonical specification, the shared infrastructure and a Spec Core Team to maintain it, the protocol would become fragmented, losing its effective interoperability – increasing the costs on all downstream users.
- Without a neutral entity as the custodian of the specification, the ecosystem would first shatter and then consolidate around the biggest (likely for-profit) actor.
- Without advocacy, conferences, documentation and tutorials, Matrix would become a niche protocol used by a few enthusiasts for side projects, whilst big proprietary and siloed networks continue to hold the world’s communications.
🔗Implementing the vision
But there is light at the end of the tunnel! Concretely, the Foundation delivers most of its value by fostering a healthy, fair and fertile ecosystem around Matrix. It needs to strike the right balance between:
- Making Matrix accessible & visible.
- For the general public it means maintaining an easy default onboarding server (Matrix.org).
- For server administrators it means providing the right tooling to keep their users (and themselves!) safe.
- For developers it means making it easy to develop products using Matrix, via documentation, tutorials, and in-person events.
- Making Matrix compelling to build on.
- This means maintaining the Matrix Specification as a canonical, unencumbered, patent free and royalty free specification.
- Being responsive and vendor-neutral when an organisation or individual contributes.
- Promoting the good players within the ecosystem.
- Ensuring the network grows and attracts more users.
- Making Matrix a product that benefits the greater good.
- This means ensuring that the general public can easily build safe & easy to use communities on Matrix.
- Ensuring that bad actors are proactively chased and discouraged to use Matrix.
🔗Doing less to do better
Matrix has been here for 10 years, and will hopefully be here for many more! But to continue to grow and thrive, it needs the Foundation to be around and healthy, which means carefully allocating its budget in order to continue to exist and fulfill its mission. This is why it needs to focus on critical programs and shut down some of its activities.
We view the following programs as critical to the Foundation’s mission:
- Maintaining the canonical, backwards compatible, stable Matrix Spec
- Developing protocol enhancements and Trust and Safety tooling, making the tools available to the ecosystem and moderating the servers under its control (typically Matrix.org) - see our recent blog post
- Running the Matrix.org homeserver as an initial home for newcomers
- Promoting the Matrix protocol via online content, conferences and meet-ups and other marketing strategies
We might fine tune our approach, but we can't cease any of those programs without severe consequences for the ecosystem.
Meanwhile, bridges have been at the heart of Matrix for a long time. Public bridges hosted by the Matrix.org Foundation have been a very good resource to show the power of interoperability, connect communities together, and onboard many people into their Matrix journey.
However, these bridges require regular maintenance as the bridged platforms evolve their APIs, and significant engineering and moderation support to run. Luckily, the Matrix ecosystem is now more mature than it was at the time we spun up those public Slack, XMPP and IRC bridge instances. There are now commercial players like Beeper providing a user-friendly offering for people who want to get all their conversations in a single app, or IndieHosters and Fairkom offering hosting for Matrix server and bridge instances (and much more).
So unless the Foundation manages to raise $100,000 of funding by the end of March 2025, we will have to focus our resources on the critical lines of work, and consequently we will have to shut down all the remaining bridges hosted by the Matrix.org Foundation. This includes bridges to Slack, XMPP, OFTC (IRC), and Snoonet (IRC). We will also mark the software behind those bridges as archived, as we don't have the resources to accept new contributions.
In practice, the Foundation needs an additional $610K in revenue to break-even, but this $100K would extend our runway 1 month while we work on landing grants and new members. To put this in context, we nearly doubled our revenue in 2024, reaching $561K, but it was also the first year in which we carried the full cost of our operations: $1.2M. To make ends meet, we liquidated $283K worth of cryptocurrency donations and ended the year with a $356K deficit. We are currently on target for $587K revenue in 2025, with a modest increase in expenses.
🔗Growing the ecosystem and the network
Choosing to shut the bridges down is a difficult decision to make, but will allow us to focus on the critical projects which will keep the ecosystem growing. The success of Matrix depends on how widely it is used by the general public and by organisations – preferably natively rather than via bridges.
The more people and organisations rely on Matrix, the more attractive it becomes for organisations to build products and services on top of it, the more funding the Foundation gets, and the more the Foundation can in turn reinvest into the ecosystem and run initiatives that benefit all stakeholders for the growth of the network.
Once the Foundation is cashflow positive, it will be able to accelerate and eventually get on with the multiple projects the team and Governing Board have in mind to make Matrix fun, exciting, reliable, safe, easy to use, and above all useful. And we hope to get there by the end of the year.
Most importantly, despite the Trust and Safety team being the Foundation’s biggest expense, as explained in our blog post, the team is still underresourced: they are understaffed and under a lot of pressure to deliver protocol improvements, better tooling for server admins, and ensure Matrix.org is a good citizen of the open federation. T&S will be the first area to see increased funding.
Separately, the Foundation wants to continue executing on its mission! Among others, better connect the doers in the ecosystem with the people and organisations who need their energy, share the successes and learnings from the community: the Matrix Conference was an incredible success and we want to see more of that.
We’ve also seen a clear change in how many users and organisations were adopting Matrix in the last few months: the world needs a decentralised end-to-end encrypted network to communicate more than ever, and it shows! We want to uplift the good players which are driving this growth.
The Foundation would also love to support more public policy efforts, which give an opportunity to shape the world by educating regulators, like for the Digital Markets Act; or stronger involvement in standardisation: we had no choice but reduce the effort spent on participating in MIMI, the IETF working group for instant messaging interoperability due to lack of resources.
There is so much more that we could do to make Matrix better and realise its full potential.
🔗So what now?
Right now, the Foundation urgently needs your financial help. For the sake of a safe network, our primary focus today, but also to be able to deliver on the reason we all want Matrix to succeed.
Because we believe that:
- People should have full control over their own communication.
- People should not be locked into centralised communication silos, but instead be free to pick who hosts their communication without limiting who they can reach.
- The ability to converse securely and privately is a basic human right.
- Communication should be available to everyone as a free and open, unencumbered, standard and global network.
In short:
If you are an organisation building on top of Matrix, you can help by becoming a member, which also gives you the opportunity to be eligible to participate in the Governing Board, and other perks.
If you are an organisation buying Matrix services or products, you can help by ensuring that your vendor is financially contributing back to the project or becoming a member yourself.
If you are an individual using Matrix, you can help by making a donation or becoming a member.
If you are a philanthropist or other funder, you can help by getting in touch with us at funding@matrix.org to discuss funding options.
It isn’t the first time we’ve rung the alarm bell, and it is no fun to beg for help. We are at a crossroads, where the vibrancy of the ecosystem and enthusiasm around Matrix is not reflected in the support the Foundation gets, and we are at risk of losing this common resource and all it offers.
But all in all, we are optimists – we wouldn’t have begun this journey if we weren’t – and we believe that there are people out there who realise that sovereign and secure communication is as high on the list of today’s essential technology – if not higher – as ensuring AI is safe, so let’s spread the word and let’s continue working on a safer and more sovereign world!