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You don’t even need “power hungry mods” for that to go wrong, you just need mods who don’t care. That’s EXACTLY where Facebook and Twitter are right now. Getting content removed there is basically impossible, I’ve reported people for death threats and was told they never violated community standards.
If the platform isn’t going to moderate itself, the users should be able to.
Fuck, you can probably go all the way back to Sumeria with this one.