Is the source code going to be released?
I’m planning on it, yes, but I haven’t decided on a license or set a date yet.
Of course, releasing source code is only part of what makes software Free or Open Source. Restricting the commercial use of software is an enormous practical impediment. Commercial restrictions can turn an otherwise free program into a semi-free but proprietary program. Unfortunately, for now the author wants to restrict commercial activity around his software:
Phun is free for non-commercial use. This means you can download it, copy it etc, just don’t make money using it
Hopefully, the author will reconsider the commercial restriction and make Phun FOSS when he releases the source.