Supposedly that is gonna be integrated into Lemmy as a whole in the next update.
this post was submitted on 30 Sep 2023
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Yeah, it's coming in v19. How do I know this? Because the instance I previously used decided to update to v19 RC1 despite being a production instance. It has instance blocking in the settings. Lemmy maintainers broke API interoperability for v18 and Boost doesn't support v19 yet, though. I decided I would rather use a different instance on Boost than use the web interface on that instance.
Wait, so apps aren't inherently compatible with new Lemmy releases and have to be updated accordingly?
Talk about a rocky start for the fediverse ๐
They made a lot of breaky changes to the API since Lemmy is fairly young. Not that project management for Lemmy has exactly been great, but I'm guessing this will become less and less frequent and/or they'll start including a handful of previous versions to ease these transitions.
Not all.. Sometimes it is needed to improve things forward. But most releases do not break API access points. v0.19 is going to be great. Hopefully apps are fast in updating.
u can mute an instance: 
I don't think lemmy supports blocking instances (only users and communities)
However boost can mute instances (as well as users and communities)
I'm not sure what the difference is. But I think it's that boost will not show thing from your feed based on the mute list
Whereas setting something as blocked will prevent the lemmy servers from ever serving that community in your feed.
Fwiw Connect has the ability to block instances
Mute is local client-side filtering, blocking happens server side.
When you mute something it's just filtered out of the view you're presented with in the client - you'll still see that content if you visit using a web browser.
v0.19 will have this feature natively and app developers can use the API endpoint to allow their users to block posts from whole instances from their feeds. It won't block comments however.