I think that’s the exact opposite of what this is. ALL the power on Lemmy is limited to 1 person: The instance host. They set the rules, they decide they don’t like you or the server, your entire account gets deleted because they shut it down. Another instance gets into a flame war or conflict with another, they block THE ENTIRE OTHER SERVER, essentially quarentining them out of existing.
Until the programming server that hosts all of that content goes kaput, then it’s all gone, plus all the user accounts on it. That’s the main issue I see with the distributed hosting system.