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Does lemmy.world really have 26000 users already?
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While this is indeed awesome remember that the whole point in federation is having a lot of small communities rather than one or two huge ones.
In large part the same also happened on mastodon where mastodon.social has 200k people. This is not the way that ti's supposed to work; no single instance should have this many users, in fact often it's better to have instances for maybe 50 users at most
Anyone who is really hoping for the "fediverse" (fuck me I hate that name) to actually play out that way is delusional. 99.9% of casual users don't care about federation, they care about convenience. They want to go where the people are. This was always going to happen to federated sites as they get big, one will win out as the most popular. As you said, happened with mastodon, will happen here, will happen on any other federated service like peer tube or whatever it's called.
Email works, or used to until giant corporations consolidated hundreds of small providers into a handful. I don't know why it wouldn't work for this.
Sure, the average user doesn't care how it works. That doesn't mean they can't use it as intended anyway.