Many communities went back to IRC, though, because Matrix still is a hot mess, and the most visible ones which didn't (Mozilla, KDE, ...) are not hosting their own Matrix instance but letting New Vector do that for them, which makes in practice a disproportionate amount of users and accounts be managed by a single organization. I do think it's better than discord, but barely so.
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If this is the electroshock that Matrix needs to reconsider its design and directions? good for them. If that kills them? Well too bad, but it's not like they are the only cool kid in town.