If I pay for v.2 and at some future date decide to no longer pay, what happens? Will AxCrypt decrypt any files and folders that it has encrypted?
If you stop paying then you downgrade to the free plan.
As Svante has said you’ll lose the premium features but your files won’t suddenly lose protection. AxCrypt won’t decrypt your files unless you ask it to.
It’s not the case that your files will be automatically decrypted because you’ve stopped paying. Therefore if you want to decrypt your files which were encrypted with premium then you’ll still be able to – even as a free user.