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There is also currently no advertising incentive for tracking user data, since there are no ads. Ublock Origin extension blocks 0 things here, which is a marvel on the internet.
I think it'd be possible in future for corporations to make their own federated instances, and those might have ads and/or more tracking? I'm no expert though.
I think there are trade-offs, but overall I feel good about it compared to all the corporate social media sites that we know are tracking and selling data, refusing to delete data, etc.