Mastodon Launches In-App Donations to Support Open Source Development

Mastodon to Test In-App Donations for Funding

The open-source social network Mastodon, a competitor to platforms like X and Threads, is initiating a new fundraising method. A new system of in-app donations will soon be tested within its mobile applications.

Introducing Donation Banners

On Wednesday, the organization announced the launch of a campaign featuring banners within its Android and iOS apps. These banners are designed to solicit monetary contributions from users.

Initially, the feature’s rollout will be limited to users of servers directly operated by the nonprofit, specifically Mastodon.social and Mastodon.online. Mastodon assures users that these banners will be easily dismissible.

Furthermore, the banners will only be displayed to accounts that have been active for a minimum of four weeks. The organization also pledges to avoid repeatedly prompting users for donations.

Potential for Success & User Base Considerations

Fundraising campaigns of this nature have proven effective for nonprofit organizations. The Wikimedia Foundation, for instance, relies heavily on funding from individual donors, often acquired through pop-up banners on Wikipedia.

However, Mastodon currently has a comparatively smaller user base. It boasts 8.1 million registered accounts, but fewer than 1 million monthly active users.

Despite this, the in-app banners could incentivize contributions from individuals who haven't previously sought out donation methods, streamlining the process.

Expansion Plans and Decentralized Support

Mastodon intends to extend the campaign to its web interface. If the initial tests prove successful, the feature will be made available to all other Mastodon instances.

This broader implementation would empower individual server administrators to receive direct financial support from their user communities, aiding in operational sustainability.

Financial Challenges of a Decentralized Platform

As a decentralized and open-source social media platform, Mastodon encounters unique financial challenges. Unlike companies like Meta and X, which generate revenue through advertising, Mastodon has primarily depended on user donations via Patreon.

It has also received limited funding from foundations and funds focused on open-source initiatives.

Recent Fundraising Results and Competitive Pressures

In 2023, Mastodon raised a total of €545,000 in donations, representing a 65% increase year-over-year. However, its Patreon donor base experienced a decline of nearly 23%, falling to 7,400 patrons. (The 2024 report is pending release.)

This decrease in Patreon support may have prompted the exploration of more proactive fundraising strategies, particularly given increasing competition from Meta and emerging platforms like Bluesky.

A Community-Focused Approach to Fundraising

A recent Mastodon blog post emphasized the organization’s commitment to transparency. “We know that collecting money can present complexities and questions,” the post stated.

Mastodon aims to collaboratively determine the most effective fundraising approach with its community. The organization clarified that this is not a traditional corporate fundraising campaign, but rather an effort to ensure the long-term viability of a more ethical and independent social web.