SweBow, a former developer of Equestria Online (now working for Legends of Equestria) has released a statement on the whole team-split incident which puts a couple things straight, corrects some misinformation that had been going around about the incident, and explains exactly what happened.

You can find his written statement at https://docs.google.com/document/d/1WI01lDh8ZLmh5VDdw2YPjjs1y8ui88KaQjBpjK5h5iI/edit?pli=1, or if you're really lazy you can find a short(er) summary below, detailing the main points.

• The team split up not because of the argument between Raindrop and SweBow, but because of a disagreement over a Code of Conduct which Raindrop did not approve of.
• Raindrop was inactive for six months of the project's development and the team had to work by themselves (for the most part.
• While he was gone, the team drew up a Code of Conduct to govern themselves.
• The Code of Conduct stated that everypony had a say in the project, had a right to their files if they left, owned their work, and could not be kicked out of the group without a majority vote.
• Raindrop wanted absolute power, while everypony else wanted a democratic way of handeling things - which had worked well previously.
• By absolute power, Raindrop meant that he had complete control over everything. Nobody in the team had any right to what they created except him.
• Because of this, the teams split up, and the %99 percent created by those who left went with them.
• None of them wished that it would come to this and tried to come to an agreement with Raindrop, but failed. Everyone who left did so of their own free will, and they have no hard feelings against Raindrop or Equestria Online.

Hope that explains everything. If not, then I would advise that you read the full version linked above.

Xtux, out!