Is there any good reason they kept DMs in cleartext?

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No?

It's kind of a trick question since there is no valid reason for doing cleartext DMs but I'm at the same time genuinely interested in why they went with it anyways.

Poor Alex, we've tagged him multiple times today about this same question in another thread 😂

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Mastodon is all about giving instance admins god mode over their fiefdom.

As opposed to one single entity like X.