Open source X rival Mastodon begins raising funds with new in-app donationfeature

Mastodon, the open-source alternative to platforms like X and Threads, is testing a new way to raise funds through in-app donations. The organization announced it will introduce banners in its Android and iOS apps, encouraging users to contribute financially. Initially, this feature will only appear for users on Mastodon’s own servers, Mastodon.social and Mastodon.online. The banners will be easy to dismiss and will only target accounts older than four weeks. Mastodon assures users they won’t face constant prompts to donate.

Nonprofit organizations often succeed with similar fundraising methods. For example, the Wikimedia Foundation relies heavily on individual donors, many of whom contribute through pop-up banners on Wikipedia. However, Mastodon’s user base is much smaller, with 8.1 million registered accounts and fewer than 1 million monthly active users. Despite this, in-app banners could simplify donations for users who haven’t actively sought out ways to support the platform.

Mastodon plans to expand the campaign to the web and, if successful, make it available to all other Mastodon instances. This would allow individual server administrators to receive direct support from their users, helping sustain their operations.

As a decentralized, open-source platform, Mastodon faces financial challenges. Unlike ad-supported platforms like Meta and X, Mastodon has primarily relied on user donations through Patreon and occasional contributions from open-source-focused funds. In 2023, Mastodon raised €545,000 in donations, a 65% increase from the previous year. However, its Patreon donor base dropped by nearly 23% to 7,400 supporters. This decline may have prompted the organization to explore more proactive fundraising strategies, especially as competition from Meta and newer platforms like Bluesky intensifies.

In a blog post, Mastodon acknowledged the complexities of fundraising but emphasized its commitment to working with the community. The initiative is framed as an effort to secure the future of an ethical and independent social web, rather than a corporate-driven campaign.