A coach’s perspective on building sustainable value through transparency, ownership, and community

After spending most of my life around locker rooms, ice rinks, and chalkboards, I’ve come to believe in systems where people show up, put in the work, and win together. That same team-first mindset is what drew me to open-source software. Not just as a development approach, but as a new kind of business model that’s reshaping how value is created and shared in the digital world.

Now that I’m diving deep into Ethereum, Web3, and the future of decentralized tech, I’m convinced,
Open-source is more than code. It’s the business infrastructure of the next internet.

Let’s break that down.

What Is an Open-Source Business Model?

Open-source software is exactly what it sounds like, source code that’s made publicly available for anyone to inspect, use, modify, and contribute to. But open-source business models are something more nuanced. They answer the question:
How do you build a sustainable company when your product is free for anyone to use?

It sounds like a paradox. But here’s the reality, open-source companies are some of the most influential and enduring tech businesses of our time.

Red Hat was acquired by IBM for $34 billion.
MongoDB, GitLab, and Elastic went public with strong market caps.
Ethereum itself, arguably the most composable and valuable open-source protocol. Secures hundreds of billions in assets.

So how do they do it?

Popular Open-Source Business Models

Here are some of the most common open-source monetization strategies, broken down with real-world relevance:

1. Open Core

Offer a functional, free version of your software with premium features behind a paywall.

Example: GitLab offers a free community edition but charges enterprises for advanced CI/CD, compliance, and security features.
Why its successful: You attract a huge user base through free tools, then monetize serious teams and organizations with specialized needs.

2. SaaS on Open-Source

Provide the same open-source product as a hosted, managed service.

Why its successful: Most companies would rather pay for uptime, scalability, and support than run infrastructure themselves.

3. Dual Licensing

The software is free for personal or non-commercial use, but companies must pay to use it commercially.

Why its successful: It preserves freedom while protecting commercial value.

4. Token Incentivized Protocols (Web3-native)

Instead of charging users, open-source protocols issue tokens to fund development and align incentives between contributors, builders, and users.

Why its successful: Tokens turn users into stakeholders, letting communities grow and steer the project.

5. Grants & Sponsorships

Some projects are so essential that they’re funded like public infrastructure, through grants from the Ethereum Foundation, DAOs, or philanthropic orgs.

Example: Prysm, Geth, Lighthouse, Ethereum client teams.
Why it works: Decentralized infrastructure needs decentralized funding. This keeps the incentives clean and the network resilient.

Why I Believe in Open-Source Models

I’m drawn to open-source because it reflects the same values that make great teams succeed: transparency, alignment, shared accountability. Here’s why it matters more than ever, especially in a post-Web2 world.

Transparency Builds Trust

In Web2, you trust a platform because you have no choice. It’s a black box. In Web3, code is law. And that law is public. If it’s open-source, you can verify what’s happening under the hood. You can fork it. You can build on it.

In a digital world full of shadowy algorithms and exploitative business models, transparency is a moat.

Community Is Not Just a Marketing Tool

Open-source flips the script. Your users aren’t just users. They’re contributors, evangelists, and co-builders. That’s incredibly powerful.

In coaching, your bench players are often your heartbeat. The ones who push practice tempo, lift others up, and keep morale high. In open-source, it’s the same. Your contributors shape the product culture and expand what’s possible.

Composability Is a Superpower

Because the code is public, other projects can plug into yours like Lego bricks. That’s why Ethereum works, everything from Lens to Farcaster to Arweave is designed to interoperate.

This isn’t just good tech. It’s a strategic advantage. When others build on your shoulders, your reach grows exponentially.

The Future of Open-Source is Onchain

With the rise of Ethereum and decentralized protocols, open-source is entering a new era. onchain public goods.

Take Arweave for example. A permanent, censorship-resistant storage layer built with open-source ideals. Or Farcaster, which uses open-source smart contracts to build an ecosystem of social apps that don’t rely on one central feed.

These aren’t just tools, they’re experiments in digital sovereignty.

You don’t need permission from a VC boardroom to participate. You just need to show up, contribute, and build something useful.

Web3’s best open-source projects aren’t fighting for market share, they’re expanding the whole pie.

Final Whistle

We’re in a pivotal moment. As AI gets more centralized and surveillance capitalism doubles down, the best defense is radical openness.

Open-source business models give us a way forward that’s honest, resilient, and regenerative. They align incentives between creators and communities. They respect the people who do the work. And they build technology that serves the public. Not platforms.

I’m not saying every project should be open-source. But I am saying this:

If we want to build a digital world where we own our data, trust our tools, and reward real contributions. Open-source has to be part of the game plan.

And that’s a team I’ll always bet on.

Let’s Keep the Conversation Going

If you’re curious about open-source, Web3, or how all this ties into the future of work. I’d love to hear from you. One of my favorite parts about this space is breaking down complex ideas in a way that actually makes sense. No jargon. No gatekeeping. Just real conversations that help more people get involved.

You can always reach out to me on X sam orth my DMs are open. Whether you're a builder, a creator, or just exploring how all this fits together, I’m here for it.

Let’s learn, share, and grow this thing together.

Why I Believe in Open-Source Business Models