Mastodon to Become a Nonprofit Organization

Mastodon Announces New European Nonprofit Organization

Mastodon, the decentralized social network, revealed plans on Monday to establish a new nonprofit organization based in Europe.

This move involves transferring ownership of entities crucial to the Mastodon ecosystem and platform. The intention is to distribute control, ensuring no single individual governs the entire project.

Shifting Control and Focus

Currently, Eugen Rochko, Mastodon’s CEO and original creator, will transition aspects of organizational management to the new European entity.

This will allow Rochko to concentrate more fully on the overall product strategy and future development of the platform.

Continued Server Operations

The organization confirmed it will maintain operation of the mastodon.social and mastodon.online servers.

These servers provide a readily accessible entry point for new users wishing to join the ActivityPub-based network.

Currently, Mastodon boasts 835,000 monthly active users distributed across a network of thousands of independent servers.

A Foundation Built on Decentralization

Mastodon’s initial legal structure was designed as a pragmatic solution to facilitate operations, according to a recent blog post.

Rochko consistently stated his commitment to keeping Mastodon independent and free from the influence of any single wealthy individual, a principle he upheld as the sole decision-maker.

Recent Organizational Changes

Last year saw the formation of a U.S.-based nonprofit aimed at securing additional funding and grants.

Biz Stone, a co-founder of Twitter, joined the board of this U.S. entity.

Concurrently, the organization experienced a loss of its nonprofit status within Germany.

Competition and Funding

While Mastodon relies on donations and sponsorships for financial support, its competitor, Bluesky, is actively seeking new investment.

Reports indicate Bluesky is aiming for a $700 million valuation in its current funding round.

Ownership of Mastodon GmbH

The new Europe-based nonprofit will assume complete ownership of Mastodon GmbH, the platform’s for-profit entity.

The organization is currently evaluating potential locations within Europe to establish the new entity.

Governance and Sustainability

“We are taking the time to select the appropriate jurisdiction and structure in Europe,” the blog post stated.

“Then we will determine which other (subsidiary) legal structures are needed to support operations and sustainability.”

The organization emphasized its commitment to establishing robust governance and leadership frameworks that align with Mastodon’s core principles and serve the community effectively.

Broader Trends in Open Source Ownership

The issue of ownership within open-source projects has gained prominence recently.

Concerns have been raised regarding the concentration of control over certain WordPress community projects in the hands of its co-creator, Matt Mullenweg.

Mastodon’s restructuring aims to proactively avoid similar scenarios where a single person holds disproportionate decision-making power.