So how long until the Fediverse is monetized?
I'm fairly new and don't 100% understand it yet, but instances are run on servers that require money. Are we heading towards seeing ads or subscriptions to raise funds instead of relying on donations to cover overhead?
Especially with the influx of new users. Hardware upgrades are needed.
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The cost will be spread out on an instance by instance basis due to which the cost per user will be low and if not they can also host their own instance which doesn't cost a lot. If it's something around $5 a month I wouldn't mind paying to support a service I plan on using everyday.
That's not how cost/user works. The cost/user actually goes UP the more small instances you have as a result of more expensive, smaller scale, and severely less optimized infrastructure. Infrastructure gets cheaper on a per-user basis as it consolidates, there are lots of technical reasons for this, but it can be summed up with scale (infra per "unit" is cheaper the more you can guarantee you'll use, and LOTS of cost optimization paths open up the larger you get).
My point is that the community is going to hit a growth barrier, and that barrier is money and efficiency. Would you be willing to donate $5/m to 50-100 instances? Since to support that kind of scale they would need to whittle down to one instance per community for large communities, and massive communities (think 10-50 million users) might not even be able to exist with the current Lemmy hosting model. I wonder if even 1-5million user communities would even function without dedicated engineering to support the infrastructure and custom tools/services to make it work.
....etc
It's a real problem. One that will be felt sooner than you might think, and one that will limit the growth, stability, and longevity of communities.
Tl;Dr: economies of scale are an economic reality. Lemmy will likely go like email, with large centralized private companies running the most popular servers.