How will it even be possible for new instances to get off the ground financially in a few years then?

Federation as it stands right now is a terrible system.

Because they will quickly use up a ton of storage just for showing other instances content, or did i misunderstand you?

That is a good question, but methods like pruning old content from other instances might evolve into a path for solving this (very real problem).

Federation as it stands right now is a terrible system.

I beg to differ. Right now federation is an okay solution. My proof is that it at least works, and that the problem you mention isn’t killing the fediverse (yet).

We should not forget that ActivityPub is a W3C standard, (which itself is a huge milestone for a decentralized internet) and like other similiar standards (eg. HTTP) it can be iterated on and improved when solutions to new or old problems are found.

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