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Don't federated instances just exacerbate already existing problems with places like Reddit, Tumblr, and Twitter? Specifically admin/mod abuse, excessive reposting/cross-posting, server lag/issues?
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Ironically, that was one of the feature I actually really liked. Seeing the same post two or three times didn't really matter to me since if it was posted in different communities, there was a wider variety of responses and perspectives (or I could just scroll past it).
Also it let me discover new communities that I wasn't aware existed.