In 2023, the open-source community was rocked by a pivotal decision: Element, the primary developer behind Synapse—the core server software for the decentralized communication protocol Matrix—switched its license from the permissive Apache 2.0 to the strict AGPLv3. This move was a direct response to widespread commercial exploitation, where companies, including defense contractors and system integrators, profited immensely from Synapse-based services while contributing little to no code or financial support in return. Element, having shouldered over 95% of the development burden since Matrix’s inception in 2014, faced unsustainable pressure. The AGPLv3 license introduced a ’pay or open up’ model: any entity modifying and offering Synapse as a service must either release their changes under the same open license or obtain a commercial agreement with Element. This shift sparked intense debate, raising concerns about innovation stifling and ecosystem fragmentation, yet was defended as a necessary step to ensure long-term sustainability and fairness in open-source development. Unlike companies that adopted ’source-available’ models—such as HashiCorp with OpenTofu—Element maintained an OSI-approved license, reinforcing its commitment to open source while enforcing reciprocity. The change created a fork point: older Apache-licensed versions remain available, but without security updates or new features, making them increasingly risky for production use. High-profile deployments, including by the German Armed Forces, validated Matrix’s robustness and supported Element’s enterprise funding strategy. The broader impact highlighted a growing industry reckoning—how to sustain foundational open-source projects in the face of freeloading. For end users, the change was largely invisible, preserving decentralized, private communication. However, for businesses, it forced a strategic pivot toward either open collaboration or paid licensing. Element’s approach, including a Contributor License Agreement allowing commercial relicensing, created a sustainable feedback loop for development, funding innovations like Sliding Sync and Native OIDC in the upcoming Matrix 2.0. Ultimately, the Synapse saga underscores a critical truth: the illusion of ’free’ software often masks the hidden labor and economic fragility behind it. By confronting the sustainability crisis head-on, Element not only protected its project but also set a precedent for how open-source communities can defend their value in a commercial world—ensuring that the digital infrastructure underpinning privacy and freedom remains both resilient and fairly supported.