I'll explain this quickly because I've been asked about it a couple of times today:

Mastodon has no ads. Its only source of funding is donations.

You could donate to the open source project itself – a fine thing to do. But at the moment, with the huge influx of new users, the funding is better off going to the instance you are using.

Each instance usually publishes a donate/patreon/crowdfunder/etc link. If you go to
[your instance url]/about
you should find information about it.

@tomw This -- the missing money problem -- is why I do not believe it can actually scale. The end result may be that rich people are able to pay enough for Mastodon to continue working for them, but the other 99% is stuck with Twitter until it fails entirely, because they collectively don't have enough money to pay for enough server scaling, never mind professional server operations and moderation.
@wollman Well, it's going OK so far. You don't need billions of dollars, just enough to pay the hosting bill. Most people won't donate and that's fine, just some people per instance – a similar model to Wikipedia, for example
@tomw It's a tiny, tiny, tiny fraction of the number of users on Twitter, and essentially all rich people in rich countries. And servers are not really holding up well under the strain, and operators are begging for volunteers to help them moderate stuff already. It's not sustainable.

@wollman I don't think you can draw the conclusion from one huge surge day that it's "not sustainable". It's already much faster again.

You seem to think that who pays has some influence on who gets to have an account? But that's not the case, the two are not connected.

@tomw @wollman if email can be free (for most users) so can mastodon.

Some users may choose ads or sell their data. Others will pay for an account or fund a non profit. Some will selfhost.

@Nlandersson @wollman I hope to be honest that ad-funded servers don't appear, but can imagine it happening. I think the response of the current community though would likely be to defederate them...
@tomw @wollman as long as they only show ads to their own users, why would they be banned?
@Nlandersson Well I don't know for sure, it would be up to instance admins and I don't know their whole thought process. But I think that commercialisation would go against the spirit of the space, and be seen as a slippery slope.
@tomw lets hope not. Mastodon will probably never be big enough to matter in the social media space without free instances. I have a hard time seeing how that would work without ads unfortunately. The best would be if more people would just pay for their services of course
@Nlandersson The instances are already free! Via optional donation

@tomw @Nlandersson

We've seen from a recent post that 22,000 of people can be hosted by a €200 server.

That requires 1/100 to donate €1/month. Doesn't seem unachievable to me.

The bigger costs come with paid mods because vile people post vile things. However the banhammer freely wielded and defederation of the awful, I'd hope, would reduce wear and tear on the mods.

Unsustainable is very much not proven.

@Homebrewandhacking @tomw if that remains true even when the datebases and media storages grow, it might be sustainable.

@Nlandersson @tomw

Well the alternative is burning to the ground so the centralised model isn't looking viable is it?