Base Ubuntu Version
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My understanding is Ubuntu Touch is based off Ubuntu 16.04 still. Is this expected to effectively be frozen in time as the point where the project forked off or will it be updated to newer version and somewhat stay in sync?
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It isn't frozen in time. When the project was forked the base was the already EOL 15.04 and a big task faced by UBports was to change that to 16.04. That was done a couple of years back.
The next big task was updating other dependencies in the stack to supported upstream versions. This may never be totally complete, but is largely done in OTA-12. This was more urgent than migrating to 18.04 as 16.04 was, and is still supported.
A stated goal is to update to 20.04LTS base before 16.04 goes EOL next year.
