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[Video] Red Hat Is About To End Xorg: Is Wayland Ready?
(www.youtube.com)
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Distributions include the Linux kernel and supporting system software and libraries, many of which are provided by the GNU Project. Many Linux distributions use the word "Linux" in their name, but the Free Software Foundation uses the name GNU/Linux to emphasize the importance of GNU software, causing some controversy.
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As the video points out, a lot of the work in xorg (and Linux in general, fwiw) is done by red hat engineers. So red hat cutting on that investment bears direct consequences for everyone else. Unless of course someone steps up and takes their place in maintenance, but it's not gonna happen, which is literally why Wayland (and not some revamped xorg) is the future of Linux desktop.
Also, red hat's decisions often trickle down on most other distros. E.g.: systemd, pulseaudio, pipewire, gnome, not including proprietary codecs, etc.
So, they technically don't arbiter, but they definitely set the pace.