Mastodon, the decentralized social network and competitor to Elon Musk’s X, has recently gained attention and support from prominent figures in the tech industry. One such figure is Biz Stone, co-founder of Twitter, who has joined Mastodon’s board of directors. This move comes as users are seeking alternatives to X’s “everything app” that no longer resembles the Twitter of old.
While Mastodon shares similarities with Twitter, it operates on a different infrastructure. It is part of the “fediverse,” which refers to the interconnected servers that communicate over the ActivityPub protocol. This decentralized approach appeals to users who want to avoid being tied to a centralized social network that can be bought and sold by billionaire owners like Musk.
In 2021, Mastodon established itself as a non-profit in Germany. However, recent developments have led the company to create a 501(c)(3) non-profit in the United States. This move allows Mastodon to receive tax-deductible donations and other financial support. It also comes after Mastodon mysteriously lost its non-profit status in Germany, receiving no warning or explanation.
Eugen Rochko, CEO of Mastodon, expressed his frustration with the situation in a blog post. He mentioned that Mastodon had undergone a successful tax audit earlier in the year, which resulted in some favorable adjustments. Despite this, their non-profit status was unexpectedly withdrawn. Rochko’s tax advisor has appealed the decision, but they are still awaiting further information.
Fortunately, Mastodon’s day-to-day operations have not been affected by these changes. Most of their income comes from the crowdfunding platform Patreon, and they have received substantial donations from Jeff Atwood and Mozilla. Thanks to these donations, Mastodon was able to hire a third full-time developer this year.
Establishing itself as a non-profit not only allows Mastodon to regain its status but also highlights its unique approach compared to other social media platforms. It wants to emphasize the importance of remaining based in the EU, even with the establishment of a non-profit in the US.
In addition to Biz Stone, Mastodon’s board of directors includes Esra’a Al Shafei, a human rights advocate and founder of Majal.org; Karien Bezuidenhout, an advocate for openness and experienced board member across sustainable social enterprise; Amir Ghavi, a partner at law firm Fried Frank specializing in technology transactions; and Felix Hlatky, the Chief Financial Officer of Mastodon since 2020. Hlatky played a crucial role in incorporating Mastodon as a non-profit LLC in Germany and helping to raise additional funds.
The inclusion of these notable individuals on the board of directors further strengthens Mastodon’s credibility and expertise in the industry. With their support, Mastodon is well-positioned to continue providing a decentralized and alternative social network option for users who value openness and privacy.