this post was submitted on 12 Jun 2023
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I think smaller instances of a maximum of 1-2000 people are the way to go for the future. Most instance owners are hosting it because they want to and they have a lil extra cash to throw at it, the 500-2000 people instances are usually funded by the likes of a patreon ko.fi or other donation setup.
These instances aren't big enough that the cost is of an instance isn't massive and can therefore avoid the likes of Venture capital and Angel investors, and if they start to reach the level where funding is getting a bit short even with donations, they can close new account creation untill the number of donators increases beyond a point
TL;DR: Essentially instances should be welcoming new accounts in waves. So that their growth doesn't outpace donation income.