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Mindustry is on steam (and not free), but also open source. Seems to work fine for them? (I bought it before I even knew it was open source, that was just the cherry on top)
Yes, but you can't include Unity source code so people would have to download the Unity engine to build and play the game from source. They support some open source projects themselves: https://unity.com/open-projects
NOTE:
The number of mentions on this list indicates mentions on common posts plus user suggested alternatives.
Hence, a higher number means a more popular project.