I think it might still just have to allow advertizing. Maybe not individually targeted advertizing, but like a general banner ad in a sidebar for the server host’s benefit, or a video creator’s midroll sponsor ad. Or a a small server subscription fee for reasonably large servers, like apps do.

Even if the hosts make some money off it and it’s not entirely free and ad free for all instances, it could still be better than one single, centralized corporation that’s in control of everything and can monetize however it wants without consequence.

But regardless, the issue with potentially unintentionally seeding child abuse materials, revenge porn, and so on is my main concern. I personally won’t touch the platform until and unless I’m sure I will have control over what I do or don’t seed and that I will never end up unknowingly doing this just by using the service.