It's a public event, anyone can create and publish, and relays and clients are free to interpret how they see fit

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I wouldn’t be surprised if relays are manually curating mute lists and using event reports to help them.

Centralized manual curation of something that yearns for decentralized curation. A losing proposition. Like in the last season of Halt and Catch Fire (they were trying to curate the web manually, pre-Google.)