If you build a nostr app which then requires 24/7 moderation and manual censorship… what was the point?

Escape a technical trap and walked straight into a commercial trap?

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It would be an expensive service to onboard people to nostr. As soon as people would use their damus account on FreeDamus (web version or so), Apple would probably ban even a moderated Damus and all apps that use the nostr network.

I wonder if it has to grow bigger as web app clients before getting into native iOS.

Lots of techs don’t have these mod requirements or demands that a platform ban users who create objectionable content.

eg email, all private messaging apps, etc.

They have judged Damus as a platform, whereas in reality it doesn’t host anything.

Precisely.