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I wouldn’t call it a shit show, they were first in E2E encrypted collaborative messaging platforms and get all the hits. Moderation turned out to be incompatible with E2E encryption. People kicked out of channels can still decrypt because keys revocation hasn’t been made.
Matrix server is a resource hog and a mess, and the protocol has never took off to spark alternative implementations.
Encryption doesn’t scale well for big channels.
They got many things right, but got crippled by many things they couldn’t possibly predict.
I had never used Matrix outside direct messaging so I was unaware of the lack of key revocation.