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The concept of the Fediverse is horizontal rather than vertical growth - i.e. More smaller instances rather than increasing the capacity of the larger ones. We're also seeing that Lemmy currently only scales to a certain degree. Right now, most instances are either covered by their admin because they're so small that the cost is manageable or instances are setting up donations.
It's conceivable that a business would set up an instance and charge for it - but I think it unlikely. A year town the road, though, who knows?
Hadn't occurred to me before - I guess instances/mods can limit the number of new users they take in so it doesn't impact performance too much.
Yup - as the admin of a small instance, I plan to keep it small. I want to contribute the Fediverse but not have this become more than a hobby.
okay
Doesn’t really make sense, if they’re federated then you wouldn’t need to pay them to access their content. If they’re not federated then what are you paying for?
You're paying for reliability, continuity, possibly a domain name which may give a sense of exclusivity. By joining a "free" server, you don't actually have a contract or terms of service.