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Open source X rival Mastodon begins raising funds with new in-app donationfeature
Mastodon, the open-source competitor to X, is launching an in-app donation feature to raise funds. Initially available on specific servers, the feature aims to encourage user donations without frequent prompts. As it faces financial challenges, Mastodon looks for sustainable funding methods, hoping to replicate the success of similar nonprofits like Wikimedia Foundation.
Key points
- Mastodon is introducing in-app donation banners on Android and iOS apps.
- The feature targets users with accounts older than four weeks and is easy to dismiss.
- Mastodon has a registered user base of 8.1 million, with fewer than 1 million active monthly users.
- The initiative is inspired by successful funding campaigns of nonprofits like Wikimedia Foundation.
- In 2023, Mastodon raised €545,000, a 65% increase, but its Patreon donors dropped by 23%.
- The campaign may expand to other Mastodon instances, allowing individual server admins to fundraise directly.
Why it matters
- The trend towards nonprofit crowdfunding through in-app donations is growing, with many organizations exploring similar strategies.
- The competition in social media, particularly with Meta and startups like Bluesky, emphasizes the need for platforms like Mastodon to find sustainable revenue models.
- Decentralized platforms face unique funding challenges compared to ad-supported giants.
Mastodon's move to introduce in-app donations reflects a strategic pivot towards securing funding amidst growing competition and financial challenges, aiming to foster an ethical, independent social media model.