this post was submitted on 06 Jul 2023
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That sort of thing should be a self-correcting problem to an extent - when performance drops, people will (hopefully) move to other intances. Also, a well-managed instance would stop accepting new members before it go to that point.
Also, there would be developers watching https://fediverse.observer to see if few registrations are open, but sign-ups are climbing in all open instances. Of course they are going to jump in if there's an opportunity.
People will only do that if they can migrate all the past history to a new instance and the syncing issues between instances are fixed
Until people start donating to instance owners, and instance owners continuously scale up the servers, thus inviting even more people to centralised on the biggest few instances.