Could relays be free and paid at the same time? Accept notes of a certain size freely but come back asking for payment of LN invoice to accept notes containing more data than their set threshold?

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It's possible, but data storage is the cheapest part of hosting a relay. The actual instance (compute) is usually the most expensive part. If right size everything and leverage Docker containers can keep costs down for a very robust network like we have. Of course the more data the more processing so have to take into account.