Reddit migrator here (shocking, I know)
Just wondering because I found out about all this yesterday and just realized the ammount of independent servers, but no sign of any ads or sponsors. So… is it all based on donations?
Also don’t just lurk, if you know you should answer because lemmy only counts users who posted or commented as active users.
I think a good business model is similar to your idea, but with a twist:
Unless accounts become portable across instances, I could see best practices shifting towards users having their own personal instance so that they control it and thus can’t lose access to their history etc. But since ain’t nobody got time for that, I imagine the business model being companies providing turnkey personal instances and getting paid for hosting and management.