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How are we going to pay for all this?
(sh.itjust.works)
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I don't host any instances myself, but I have experience with web hosting in general. Yes, the hardware will need to scale vertically with more activity, but I don't know what lemmy's anticipated load thresholds are.
I would guess a decent i7 with an SSD and 16GB+ RAM would handle lemmy quite comfortably for a good while. So the expense isn't entirely trivial, but it's nothing compared to a centralized service with hundreds of millions of regular users.