Exclusive: Proton’s Historic Shift to Non-Profit Heralds People-First Internet of Unprecedented Responsibility

In a landmark move that challenges the tech industry’s status quo, Proton, the Swiss-based privacy-focused tech company, is marking its 10th anniversary by transitioning to a not-for-profit model. As of today, June 17, 2024, Proton will establish the Proton Foundation, a groundbreaking step created with a legally binding charter to protect and defend its mission of protecting online privacy in an era dominated by power-hungry corporations. data. This bold initiative not only reaffirms Proton’s commitment to user privacy, but also introduces a new paradigm of transparency and accountability in the technology ecosystem.

A decade of digital rights protection

Proton was born in 2014 by scientists who met at CERN, the European Organization for Nuclear Research, and has grown from a crowd-funded idea into a global privacy powerhouse. What started as Proton Mail, now the world’s largest encrypted email service, has blossomed into an ecosystem of privacy-focused products, including Proton VPN, Proton Calendar, Proton Drive, and Proton Pass. These services have become the vanguard of a movement that puts user privacy first, protecting over 100 million accounts worldwide and employing over 500 people.

“The establishment of the Proton Foundation is merely a legal formality that recognizes something that has always been true since its inception.” €œWhen we launched our crowdfunding campaign exactly 10 years ago, we had a simple but powerful vision: to rebuild the Internet in a way that is private by default and serves the interest of all of society, not just the interest of a few . The tech giants of Silicon Valley.â€

What sets Proton apart is its lack of venture capital backing, having reached its current scale largely through organic growth. Despite its considerable expansion, Proton has remained steadfast in its founding principles. The company maintains its financial autonomy, while its offerings remain open source, accessible at no cost, and supported by a dedicated community.

Balancing unprecedented transparency and accountability and profitable efficiency

The transition to a not-for-profit model is a commitment to unprecedented levels of transparency and accountability. Switzerland, known for its strong regulatory environment, is home to a large number of foundations and provides an advanced legal framework for their operation.

“We chose to establish the Proton Foundation in Switzerland… because of the country’s strict oversight of foundations,” Yen explains. “Cantonal and federal foundation supervisory authorities will scrutinize our operations, ensuring that we adhere to the highest standards of governance. This regulatory environment requires the Proton Foundation to undergo a comprehensive audit every year.

One of the most complicated aspects of Proton’s transition is managing the relationship between the for-profit Proton AG and the non-profit Proton Foundation. This dual structure is designed to leverage the efficiencies of a for-profit venture while maintaining the integrity of a nonprofit mission.

“A Swiss corporation is ultimately controlled by its shareholders,” notes Yen. “By positioning the Foundation as the main shareholder of Proton AG, we have given it wide latitude to influence the direction of the company. However, we have also been careful to maintain clear boundaries.”

To prevent potential conflicts of interest, particularly in relation to resource allocation and revenue sharing, Proton AG and the Proton Foundation will hold separate assets. Proton AG will contribute 1% of its net income to finance the activities of the Foundation, creating a transparent financial relationship between the two entities.

While Proton is not profit-driven, Yeni says it still needs to maintain profitability as a primary objective because a cornerstone of maintaining Proton’s mission is sustainability through financial independence. He continues, “To bring lasting change, Proton cannot be subsidized by billionaires, subsidized by donations or subsidized by Google, but instead must have at its core a profitable and healthy business that can sustain with me. This change in governance does not signal changes in the way our core businesses are run.â€

Mission-driven leadership

Maintaining the financial viability and competitiveness of Proton AG while adhering to the Foundation’s mission-driven charter will be overseen by a board of directors that is bound by the Foundation’s charter. The foundation’s board will include members of the Proton team and will also feature two notable individuals: Carissa Veliz, who serves as Professor of Ethics and Philosophy at the University of Oxford, and Sir Tim Berners-Lee, known as the inventor of the World Wide Web. Web. and Co-Founder and CTO of Inrupt.

“As a privacy researcher, I have followed the development of Proton since its birth in 2014,” said Carissa Veliz. “I see Proton as a beacon of hope. It has shown that technology can be designed to ensure privacy and that privacy can be a competitive advantage.

The Proton Foundation’s grant-making activities represent another arena where transparency and accountability are paramount. Building on Proton’s existing practices, which have seen the distribution of over $2.7 million to privacy-focused initiatives in the past five years, including Privacy International, the Tor Project and the Freedom of the Press Foundation, the Proton Foundation aims to continue to fund and support services that may never be profitable, such as initiatives to maintain a free and open Internet.

“We do not foresee a significant change in our grantmaking model because it is already deeply rooted in community involvement,” shares Yen. “Recipients will continue to be nominated annually by the Proton user community and we will maintain our policy of full disclosure regarding fund recipients.”

What will change, however, is the scale and depth of surveillance. “With the Foundation having dedicated resources, we will be able to conduct more thorough monitoring of how grantees use the funds,” Yen explains. “This enhanced oversight will provide even more transparency to the Proton community.”

A new chapter in the privacy revolution

As Proton celebrates a decade of protecting online privacy, its transformation into a non-profit organization heralds a new beginning and challenges the notion that successful technology companies should be driven solely by profit.

The company is aiming to acquire the next 100 million users and expects to achieve this milestone in a shorter time horizon. This ambitious goal is driven by increasing public awareness of privacy issues and a growing demand for alternatives to data-intensive services. Proton’s journey shows that there is a sustainable path forward – one where technology serves the interests of users first.

“Privacy isn’t just a feature; it’s a fundamental right,” Yen asserts. “By putting our mission in a foundation, backed by Switzerland’s strong regulatory framework, we’re not just protecting our future; we’re making a statement about the future of the Internet itself.”