Like does content get mirrored to my instance and then mine distributes it ala BitTorrent or is my instance it’s own thing?

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In effect, not really.

All the communities you’re subscribed to will now also have to push all their updates (posts, comments, upvotes) to your server, even when you’re not interacting with Lemmy.

As someone else mentioned, it would only be efficient once you have a decent (hard to pinpoint) amount of users on your server.

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