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Why Isn't the "All" Feed Different for Each Instance?
(reddthat.com)
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Its only everything from other instances and communities that the current instance subscribes to. It doesn't subscribe to the full pipe of everything.
What's likely happening is people in aggregate generally subscribe to the most popular communities and those communities have the most upvoted posts.
Technically true, but since this tool got widely adopted it does mean pretty much a full pipe of everything: https://lemmy-federate.com/instances