From Internal Tool to Industry Standard: A Guide to Open-Sourcing and Fostering Governance
Overview
Many innovative internal tools eventually evolve into powerful external services. Amazon’s cloud became AWS, and similarly, Block’s coding agent Goose is making a similar transition. Originally developed for internal use at Block (the fintech company behind Square), Goose was open-sourced and later handed over to the Linux Foundation’s newly formed Agentic AI Foundation (AAIF). This guide walks through the strategic process Block followed, from internal rollout to foundation governance, offering actionable insights for any organization considering a similar journey.
Whether you are a product manager, open-source program officer, or technical lead, understanding the steps—and pitfalls—can help you navigate trademark concerns, governance transparency, and foundation selection.
Prerequisites
Before embarking on open-sourcing an internal tool and transferring it to a foundation, ensure you have:
- Organizational buy-in: Executive sponsorship to support the legal and governance shifts.
- Legal review of intellectual property: Clear ownership of code, trademarks, and patents.
- Community interest: Preferably a nascent user community or early adopters who will benefit from open governance.
- Governance framework draft: A basic model (e.g., meritocratic, corporate-backed) that aligns with open-source best practices.
- Foundation evaluation criteria: List of potential host foundations (e.g., Linux Foundation, Apache Foundation, CNCF) with their requirements and benefits.
Step-by-Step Guide: From Internal Tool to Foundation-Hosted Project
Step 1: Internal Rollout and Validation
Block first deployed Goose to all 12,000 employees. This internal adoption provided real-world testing, refined functionality, and built internal champions. Key actions:
- Track usage metrics (e.g., number of active users, tasks automated).
- Gather feedback for improvement.
- Document dependencies and APIs (in Goose’s case, it leverages the Model Context Protocol, or MCP).
Step 2: Open-Source Release with a Permissive License
Once validated, Block released Goose to the public under a permissive license (e.g., Apache 2.0 or MIT). This step attracts external contributors and early adopters. However, trademark retention can become a stumbling block. Block initially kept Goose’s trademarks, which hindered enterprise adoption due to perceived lack of neutrality. Tip: Consider transferring trademarks to a foundation early to signal commitment.
Step 3: Identify Governance Lacks
After open-sourcing, Block faced “headwinds” as Manik Surtani (former head of open-source at Block and now CTO of AAIF) explained. The biggest issue was a lack of transparent governance. Without a neutral board, enterprises feared future control shifts. Steps to take:
- Conduct open-source health assessment.
- Survey enterprise adopters about governance concerns.
- Recognize that trademark ownership by a single company creates a bottleneck.
Step 4: Evaluate Foundation Options
Block considered several foundations. The choice depended on alignment with existing ecosystem partners. Goose used MCP (from Anthropic), and there was also Agents.MD, another tool. The team decided to link arms with the MCP team and the “Goose Crew” to found a new foundation rather than join an existing one. Factors to weigh:
- Industry relevance: Does the foundation cover your domain (e.g., agentic AI)?
- Culture and governance model: Some foundations are vendor-driven, others community-driven.
- Corporate vs. neutral: A foundation like the Linux Foundation ensures long-term neutrality.
Step 5: Found a New Foundation (or Join Existing)
Block chose to help found the Agentic AI Foundation (AAIF) as an arm of the Linux Foundation. This combined speed (launching with three tools: Goose, MCP, Agents.MD) with established infrastructure. Critical actions:
- Define the foundation’s purpose, member levels, and technical steering committee.
- Transfer code, trademarks, and documentation to the foundation.
- Announce with early partner endorsements (e.g., AWS crew guiding MCP).
Step 6: Foster Community and Continue Development
With governance in place, focus shifts to growth. Block (and other AAIF members) now contribute to Goose under the foundation’s rules. Surtani noted that expediency was a factor in launching AAIF with just three tools, but the umbrella is open to more projects. Best practices:
- Establish clear contribution guidelines (CLA, DCO).
- Host regular community calls and events (like the MCP developer event).
- Ensure the foundation handles trademarks and trademark licenses.
Common Mistakes to Avoid
Mistake 1: Retaining Trademarks While Open-Sourcing
Enterprises are wary of using a project whose name and logo belong to a single company. Block learned this firsthand. Solution: Transfer trademarks to the foundation at the time of open-sourcing or shortly after.
Mistake 2: Choosing the Wrong Foundation Type
Not all foundations offer the same level of autonomy. For example, a foundation under a large vendor may still have perceived conflicts. Solution: Select a foundation with a track record of neutrality, like the Linux Foundation, or create a new one under its umbrella.
Mistake 3: Launching Without Enough Momentum
Block avoided this by already having three tools (Goose, MCP, Agents.MD) as initial members. Solution: Recruit at least one or two additional projects or key corporate sponsors before announcing.
Mistake 4: Lack of Transparent Governance from Day One
When Block first open-sourced Goose, governance was unclear. Solution: Draft governance documents even before release; make them public.
Summary
Block’s journey with Goose—from an internal coding agent to a cornerstone of the Agentic AI Foundation under the Linux Foundation—illustrates the critical steps in open-sourcing a tool and establishing credible governance. The key takeaways: release early under a permissive license, but do not retain trademarks; identify governance gaps proactively; choose a foundation that balances neutrality and industry support; and build a community of projects from the start. By following this guide, you can avoid the headwinds Block encountered and set your project up for broad enterprise adoption.
For more details, read our original coverage here.