Selfhosted
A place to share alternatives to popular online services that can be self-hosted without giving up privacy or locking you into a service you don't control.
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You need really small instances for that to do something. The issue here is not only mega instances, but more curcially mega communities.
If people on your instance subscribe to the top 50 communities you already have more than 50% of the whole lemmy traffic on your instance. And 50 subscriptions isn't all that much for even a single user.
And mega communities is kinda the whole point of any reddit-like service. The really cool thing about reddit is that no matter how obscure the topic, there's a subreddit for it with experts in the field. Lemmy is still lacking that for most topics, but that would be where a real Reddit alternative would want to end up.
If you have a look at reddit, they have over 1000 subreddits with over a million subscribers each. Every single one of these subreddits has around 200x the traffic of all of Lemmy combined. So if Lemmy were to grow to Reddit levels and a single user subscribes to a single community like that, your whole instance is cooked.