If the descentralization of social networks continue, we will have to prepare for the eventual rise of the instances wars, where people will start to fight about which instance is better and which one is weird to be in and so on, but that's for the future of us all.
We can keep playing this until some bad actor is pretending to be me typing this right now.
But this is why moderators work in teams, and why there is an admin as well. A solo mod who’s a bad actor is not going to develop a very appealing community, and whole scam shitpile instances can always be defederated.