It doesn't make money. It's funded either by donations, or out of the pockets of the instance owner(s). It doesn't mean that in the future, an instance owner wouldn't just decide to start serving ads, I don't think theres anything stopping them from doing that other than the threat of being defederated by other instances.
this post was submitted on 21 Jun 2023
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I'd be surprised if the donations cover the cost of the servers. It's pretty much run entirely on the goodwill of the server owner
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They print shitcoins and sell them to dummies.