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Lemmy and GDPR - What is the current state?
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Lemmy can avoid the impossibly heavy burden of compliance by becoming an underground illegal service and/or IP banning the Europeans Union and/or abolishing the European Union.
That is a terrible option, cuts off a huge amount of potential users, and basically impossible to do fediverse wide. In fact, The European Union actually has official Fediverse accounts (on Mastodon, custom instance), and if the EU itself is willing to use a platform, that means it's probably not gonna be taken down by the EU.
Recent event shows the lemmeyverse cares neither about new users nor federation. Everything is designed to work off a single exclusionary instance or small cabal of large instances
This is a natural phenomenon called the Pareto principle. Roughly 80% of the users will sign up for the top 20% of instances. It happens everywhere in nature and it's unavoidable. But I don't think it will be a problem, federation is designed to work like this. You're not forced to stay on lemmy.world, you can move whenever you want.