Yep, the post goes through public relays. It's basically a GiftWrapped DM, but using kind 1 instead of the new DM kind. Replies/likes can be GiftWrapped as well. The app will simply send posts to everybody that paid (have a zap payment to the subscription event) in that month.

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So if a content creator had 1 million subscribers, they would push 1 million giftwrapped events to their write relays?