I agree wholeheartedly. I am curious on how instances will deal with overfunding. And where there’s profit, there’s capitalism.

Second option is difficult because there are too many instances. It is difficult to make good use of the funds as the popular instances will eventually enjoy too much profit whilst the smaller instances will be forced to shutdown due to lack of funds. This will lessen the decentralisation overtime.

The solution is a central service, something like Lemmy Fund Management or something, which regulates the funds accordingly. The managers will be selected by voting system (democracy).