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Besides all the discussion of nonprofits and donations, fedi server hosts have way less overhead. They're not generally trying to profit, so they only need to break even (or run a deficit small enough to deal with out of pocket). A corporation is trying to give 6 or 7 digit salaries to CEOs and/or shareholders. So they need to extract more than the cost of hosting.
Also, a site like Reddit wants something like 99.9% availability: roughly 8 hours of downtime per year. Lemmy instances are probably satisfied with 99% availability: roughly 3 days of downtime per year. If one instance is down, but the rest of the fediverse is up, it's a bit annoying, but not devastating. Users of that instance might have to create alt accounts on another fediverse instance, and certain communities would be offline for days. But, as long as the entire fediverse itself doesn't go down, it's not the same as a Reddit outage.
Getting that extra "9" of availability means having engineers on call, it means having a technical staff that creates and maintains monitoring systems, does capacity planning, runs disaster preparedness scenarios, etc. It's expensive.
Some fediverse admins might run monitoring systems, either because they really care about their instance, or because doing it is interesting and fun. The ones that don't might just have to do reactive maintenance when something breaks. But, because you're only aiming for 2 nines, it doesn't have to be a full time job.
"Generally not trying to profit" - but we're all humans. If someone offered (hypothetical amount) $2M to "buy" an instance, which admins would sell?
But why would you as a user stay on that instance?
If you start seeing ads and you don't want to, you move to another instance. If all instances start to serve ads and you don't want to see ads, you have to start your own instance.
I think about this a lot. Lemmy fully deserves to have a lot of users, and a lot of users means a lot of opportunity to profit one way or the other, so the potential for profit-seeking behavior is there. So if we imagine a future where one instance has 500k users, it's easy to imagine the owners trying to take it beyond the break even point and making it as profitable as possible. Anyone who puts themselves through the trouble of hosting an instance deserves to make a good living, but we don't want predatory greedy policies.
The question is, how easy is it to migrate your account from one instance to the other? I haven't tried yet
I'd like to know that too. The solution I've seen mentioned is to just create your own instance to host your own account which is... easier said than done, lol.
It would be cool if we could keep offline backups of our accounts and "sync" them to an instance of our choosing. Migrating would be as simple as syncing up the backup to another instance. And importantly, it would be way easier than setting up one's own linux server, most people wouldn't even know where to start.
That's a great idea, then each user owns their own info entirely.
Is there any community suggestions instance? Wouldn't mind making a post with a backups functionality request if one hasn't been made yet 😅
But who would stay on an instance with ads or something when there are thousands of options?
Hell, I made accounts on the top handful of instances just for situations in which one goes down for maintenance, or the admins do something weird (like defederating from big communities).
That's true, an instance would be very tempted by that. I was referring more to the day to day, there's no incentive to squeeze users.