instead of having one dude run the backend there are now four people running it and users have to pick which one they want to use in their trades. So the *total* amount of custodied btc is split up among four people, which is a bit like a federation if you squint. They call it the federated model.
Discussion
this is the same as calling nostr a federation because each person runs a relay
True. I will try to remember to call out this incorrect nomenclature in the future
✅ nostr:nprofile1qqspuutgw44ueu3snj34vcwsdw4khngyfppq4v6f427a4tczw34329gpzpmhxue69uhkummnw3ezumt0d5hslg8q33 is calling it federation.
Yeah but he probably shouldn't
Having multiple people run the backend independently is a good way of distributing risk but it's not right to call that a federation
They don't "co own" a single robosats "address" like a federation would. They are all independent
Would be interesting if they all ran a fed instance though and custodied all the bitcoins there, then they could truly call it a federation
But I think I prefer the current model