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Lack of centralized control.
Until there’s some kind of organizing central committee of servers that could mutually defederate problematic instances, every server is forced to play whack-a-mole to deal with fascists and pedophiles and the like. Every server can not be an island onto themselves, they should be in communication with each other and then collectively decide on the rules of the federation.
I really really don’t like the idea of a central committee of liberals that will defed any instances that are more radical that “vote blue no matter who!”