I’d say the timestamp is stored in UTC then the application / business logic needs to understand what the user’s local time zone is and convert it to whatever local time it is based on that user’s setting. It’s not really a Nostr thing, though, an application thing

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It’s been a while since I’ve looked at the spec, but I’d say probably make most sense to store this in the metadata / profile event if you were to do it only using Nostr otherwise a db to support application specific logic