I’m fairly new and don’t 100% understand it yet, but instances are run on servers that require money. Are we heading towards seeing ads or subscriptions to raise funds instead of relying on donations to cover overhead?
Especially with the influx of new users. Hardware upgrades are needed.
Exactly. Federation means no single instance needs to serve millions of users. If one gets too big and becomes too commercialized, you can move to a different one that shares your values. If large instances cost more per user as they scale up, we just need more instances.
I also think people are vastly overestimating the cost to serve users on Lemmy/kbin. Last time I calculated it, lemmy.world costs were around €0.01/mo per monthly active user. That can be maintained with 1% users donating €1 a month.