this post was submitted on 18 Jun 2023
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Perhaps you are right. They also have server costs, but maybe they aren't as big. But other federated networks exist: Mastodon, Matrix and PeerTube. I don't think they have ads, so Lemmy should be able to at least reach their size without them. I can't say what would happen when it reaches a billion users though.
On the other hand the costs will be distributed among many instance owners, so I don't know why ads would be needed. We can have thousands of instances for example.