this post was submitted on 01 Jul 2023
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Second option is difficult because there are too many instances. It is difficult to make good use of the funds as the popular instances will eventually enjoy too much profit whilst the smaller instances will be forced to shutdown due to lack of funds. This will lessen the decentralisation overtime.
The solution is a central service, something like Lemmy Fund Management or something, which regulates the funds accordingly. The managers will be selected by voting system (democracy). There are other solutions as well.
But then the centralised service becomes a single point of failure. If you attack that one service, all instances lose their funding.
I can see that being an issue and a flaw. I think if everybody focuses on a solution, we can surely do something about it.