Mastodon Transitions to a European Non-Profit Structure to Decentralize Control
Decentralized social network Mastodon has announced plans to transition to a new non-profit structure in Europe, effectively redistributing control over critical ecosystem and platform components. This strategic move aims to ensure that no single individual holds complete authority over the project, setting it apart from social networks led by prominent figures like Elon Musk and Mark Zuckerberg.
Currently, exact plans remain in development. However, the changes imply that Mastodon's CEO and creator, Eugen Rochko, will delegate aspects of organizational management to this new entity, freeing him to concentrate on the platform's strategic direction.
Mastodon affirmed it will continue managing the servers at mastodon.social and mastodon.online, allowing users to join its ActivityPub-based network. At present, Mastodon boasts 835,000 active monthly users across a multitude of servers.
"When founder Eugen Rochko started working on Mastodon, his focus was on creating the code and conditions for the kind of social media he envisioned. The legal setup was a means to an end, a quick fix to allow him to continue operations. From the start, he declared that Mastodon would not be for sale and would be free of the control of a single wealthy individual, and he could ensure that because he was the person in control, the only ultimate decision-maker," Mastodon revealed.
In its efforts to secure more funding and grants, Mastodon previously established a U.S.-based non-profit entity last year with Twitter co-founder Biz Stone on its board. This shift cost it its non-profit status in Germany.
Relying predominantly on donations and sponsorships, Mastodon contrasts with its competitor Bluesky, which is reportedly attracting investor interest at a hefty $700 million valuation.
According to the blog post, the upcoming Europe-based non-profit entity is set to wholly own the Mastodon GmbH for-profit entity, with decisions pending on the exact location for the new setup.
"We are taking the time to select the appropriate jurisdiction and structure in Europe. Then we will determine which other (subsidiary) legal structures are needed to support operations and sustainability," the organization stated.
"Throughout, we will focus on establishing the appropriate governance and leadership frameworks that reflect the nature and purpose of Mastodon as a whole, and responsibly serve the community."
This restructuring effort comes amidst growing discussions about the control of open-source projects. A notable example is concerns regarding WordPress community projects' control by its co-creator Matt Mullenweg. Through its new structure, Mastodon seeks to avoid such centralized decision-making pitfalls.