I have seen no performance issues hosting a few million records on RPis for https://bitcoinheaders.net/
But, BIP 353 does contemplate doing multiple users in a single wildcard record.
Yes, but at what point do the performance issues start?
I was reading through this forum discussing around 50 million records on a domain (assuming we get to a point where a successful lightnin wallet provider/implementation gets to at least 50 million users) .
https://groups.google.com/g/comp.protocols.dns.bind/c/6InK8Qs8R2s
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