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Embrace, Extend, Enforce (ƎƎƎ): A practical Strategy against potentially abusive Instances like Meta’s Threads
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In this case, I would argue MimicJar's point (Edit: Shit, I didn't notice who I'm talking to. Well, you make good points I guess, lmao), and say that even if we were to defederate with the large instance, we're still no worse off than if we had never federated in the first place - in fact, we'd likely be better off, since any anti-nazi users in your scenario would know where to find us.
The way I look at it is like, if Reddit were part of the Fediverse, they would've dominated in much the same way as Threads intends to. But the moment they even started pulling sketchy tactics, we could've jumped to other instances.
I mean, that's essentially what I did anyway, but with no clearly defined alternative, not everyone knows about the Fediverse, whereas they would've had that option if Reddit was federated. Plus, in theory, I'd still be able to view and interact with Reddit content from my instance, at least until they separate entirely - at which point (again) I would have the choice.
I personally believe that, given the choice, many people would decide to support smaller federated instances over corporate monoliths. Not most, but many.
Realistically it is in Threads best interest to pretend they care about the Fediverse.
In return the Fediverse should pretend to care about Threads.
In reality the Fediverse should "steal" Threads users. At some point Threads will do something really stupid (hopefully not immediately) and the Fediverse can go back to ignoring Threads, but having gained a good subset of users.
Agreed, I think we should very cautiously federate, while keeping in mind that they will inevitably pull the rug.