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I assume there'd be a limit on the number of popular communities each server can handle. CommunityA@ServerB and CommunityC@ServerD can grow separately and you could participate in both.

If you had CommunityA at both, eventually everyone might migrate to ServerB; but then there's more room on ServerD for other communities.

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Does this mean that instances that happen to have the popular communities gets hosed on hosting costs? Or stop submissions? Meanwhile "CommunityA" on other instances starve for content and subscribes. If that's true, communities should be federated as well. Like a user should be able to subscribe to "CommunityA" and get that content from all instances who have a "CommunityA".

Or is that totally off?

AFAICT yes. Posts are federated, but nothing else is.

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