Introduction
Turning an internal tool into a thriving open-source project is a smart move—just ask Block, the fintech company behind the coding agent Goose. After releasing Goose to the public under a permissive license, Block quickly saw rapid adoption. But as Manik Surtani, former head of open-source at Block and now CTO of the Agentic AI Foundation, explained to The New Stack, the project hit governance headwinds. Block still owned Goose’s trademarks, creating a lack of transparency that hindered enterprise adoption. The solution? Transferring Goose to a neutral foundation. This guide walks you through the same process, using Block’s journey as a real-world example. You’ll learn how to open-source an internal tool and smoothly hand over governance to a foundation, ensuring long-term community trust and growth.
What You Need
- An internal tool that is stable and ready for external use (e.g., Goose, a coding agent).
- A permissive open-source license (such as Apache 2.0 or MIT) to allow broad adoption.
- Trademark ownership of your tool’s name and logo, with willingness to transfer it.
- Early community adoption – evidence that outside developers want to use and contribute to your project.
- Relationships with relevant open-source communities or standards bodies (e.g., the Model Context Protocol team).
- A parent foundation that can host a dedicated arm for your project (like the Linux Foundation).
- Legal and governance expertise to navigate trademark transfers and foundation charters.
Step-by-Step Guide
Step 1: Release Your Tool Under a Permissive License
Start by open-sourcing your internal tool. Block released Goose to the broader technology community under a permissive license, making the source code freely available. This step is critical for gaining traction and attracting contributors. Choose a license like Apache 2.0 that allows commercial use and modification. Announce the release on developer forums, social media, and tech news outlets to maximize visibility.
Step 2: Monitor Adoption and Identify Governance Gaps
After the initial release, watch how your project grows. Block saw “rapid early adoption,” but soon encountered “headwinds.” The main issue: lack of governance transparency. Because Block still owned the Goose trademarks, enterprise users hesitated to fully commit. They worried about future control. Document these concerns. Are users asking about decision-making processes? Are they confused about who steers the project? Use surveys and community feedback to pinpoint governance issues.
Step 3: Evaluate Foundation Options
Once you recognize that governance needs improvement, explore neutral foundations that can take over. Block considered several options before deciding to “give Goose to a foundation.” The key criteria: the foundation should be respected, have a track record of hosting successful open-source projects, and offer trademark protection. The Linux Foundation is a popular choice because it provides legal, operational, and marketing support for projects like Kubernetes and Node.js.
Step 4: Align with Complementary Communities
Don’t go it alone. Block spoke with the MCP team (behind the Model Context Protocol) and Anthropic, the creators of the MCP standard. They “linked arms” to form a foundation together. By partnering with related projects—like Goose, MCP, and Agents.MD—you create a stronger, more credible suite of tools. This collaboration also speeds up the foundation’s launch and builds a community that spans different but complementary technologies.
Step 5: Establish a Dedicated Foundation Arm
Instead of just contributing your tool to an existing foundation, create a specialized arm. Block helped found the Agentic AI Foundation (AAIF) under the Linux Foundation umbrella. This arm focused on agentic AI tools like Goose, MCP, and Agents.MD. A dedicated arm ensures your project gets targeted attention, dedicated resources, and a governance structure tailored to its needs. Work with the parent foundation’s team to draft a charter, set up a steering committee, and define membership tiers.
Step 6: Transfer Trademarks and Intellectual Property
The critical move: hand over all trademarks to the foundation. Block owned Goose’s trademarks, which “hampered enterprise adoption.” Once transferred, the foundation becomes the official steward of the brand. This reassures enterprises that the project is truly neutral and will not be subject to a single company’s whims. Ensure your legal team executes a proper IP assignment agreement, and update the project’s website and documentation to reflect new ownership.
Step 7: Launch the Foundation with a Core Set of Tools
Announce the foundation with an initial lineup of projects. AAIF launched with Goose, MCP, and Agents.MD. Having multiple tools at launch adds credibility and attracts more contributors. Block’s Surtani noted that “launching the foundation with the trio of tools was partially due to expediency”—it got the group up and running quickly. Plan a launch event, press release, and developer outreach. Invite corporate sponsors (like AWS) and individual developers to join the governance board.
Step 8: Foster Corporate and Developer Buy-in
Once the foundation is live, encourage both companies and developers to participate. AAIF saw “corporate and developer buy-in” from the start. Offer membership options for enterprises (with voting rights and trademark usage) and low-barrier ways for individual contributors to engage. Transparent governance—public meetings, open RFCs, and clear contribution guidelines—builds trust. The result? Your tool can “fully unfurl its wings and soar,” just like Goose.
Tips for a Smooth Governance Transfer
- Start planning early. Don’t wait until governance issues become critical. Begin conversations with potential foundations as soon as you open-source your tool.
- Prioritize transparency. The biggest hurdle Block faced was lack of governance transparency. Make sure your foundation’s charter, decision-making process, and trademark policy are public and easy to understand.
- Leverage existing communities. Partnering with projects like MCP not only adds strength but also reduces duplication of effort. It creates a unified ecosystem.
- Don’t underestimate trademarks. Owning the name and logo might seem minor, but they are crucial for enterprise adoption. Hand them over completely.
- Build a diverse steering committee. Include representatives from different companies and independent developers to avoid the appearance of single-vendor control.
- Be ready for expedited launches. As Surtani said, acting quickly can be beneficial. You can always iterate on governance later, but getting the foundation operational is the first priority.
- Communicate the benefits to your internal team. Transferring an internal tool to a foundation can feel like losing control. Emphasize that it actually increases influence and community trust, leading to faster innovation.
By following these steps and tips, your organization can replicate Block’s success: transforming an internal tool into a widely adopted, community-governed open-source project. The key is to recognize when a project has outgrown its original governance structure and to have a clear plan for transferring ownership to a neutral foundation. As Goose’s story shows, the reward is a tool that can truly soar.