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Mozilla is an AOM member. A lot of the technology in Daala has been integrated into AV1, along with Cisco's Thor.

Some of the technology*. Not all.

As a matter of fact only a few were made in AV1 because the two codec were so different.

I think it is still independently developed, but parts of it are included in AV1. Thea idea of lapped transforms in video is really interesting and AV1 isn't using it as far as I know. So hopefully Daala will continue on its own.

UPDATE: Looking at the mailing list archive, there isn't any activity there: http://lists.xiph.org/pipermail/daala/

The code repo is also pretty quiet: https://git.xiph.org/?p=daala.git;a=shortlog

I agree with you on the whole lapped transforms concept. It looked quite promising, but they ran into issue. IIRC it was problems with the overlap between differing block sizes. My instinct tells me there is a way to overcome those issues but it may be a while before anyone finds it.

They joined AV1 and contributed with some of their novel compression techniques.