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The article talks about their plans for federated moderation. It could use more detail, but it sounds like a node can choose whether to federate content that’s been tagged by other nodes with a certain reputation level. I’m not sure how confident I am in this “reputation” concept they have.

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It's really just similar to email. Reputation can be whatever metric you want, it's something your computer's spam filter (or an admin) uses to decide if it goes into the spam blocklist or not. Too many reported users, too new? Or established and known to be well behaved?

The main difference here is that there's a standardized way to export detailed labels which others can subscribe to. Email does have a bunch of spam filters that 3rd parties can subscribe to, but it's only block/not block and not officially standardized anywhere.