Yes but the problem is that your app takes those reports into consideration to censor users

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Correct. But only from the users they are following. Reports of random people are irrelevant.

So what. That is still the mob mentality controlling what you see on nostr

Every web of trust algorithm in Nostr is doing the same, which is now virtually everywhere.

So much for freedom and decentralization.

Nostr is just as shitty as the competition lol