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Thanks. Somehow people are basking in the glow of potentially having found a solution to centralized social media. But here's the thing: someone has to pay for it, and someone has to moderate it.
Many Mastodon instances couldn't handle the increased load of sign-ups when Twitter crashed or malfunctioned. I see a lot of smaller Lemmy instances begging for money already even though those places aren't host to as much content as Lemmy.world does.
We need to be aware of the limitations of the fediverse too. No, it will not solve hate on the Internet because the people who self-select to be here are somehow virtuous and above the "average Redditor". You still need money and good moderation.
If i had to guess then maybe a bunch of instances could solve that with ads and selling big data (info of the users). Not that we would whant that but its the most sthealty way to do that.
Lol people have had debates about that on Mastodon for ages. The consensus is that most people are unwilling to donate anything or see ads on the instances they use. They expect hosts to keep the instance up out of the goodness of their own hearts, and many instances have shut down over the years because hosting was no longer economically sustainable for their owners even as those owners begged for donations.
Most users (especially those who just consume free software/fediverse services and contribute little else) want something to be both free and good. That means subsidized by the owner because they believe in the cause and good because of the lack of monetization.