Either Nostr evolves to have every client being a relay, or it will fail. The risk is the same as that of LSPs. Damus itself should definitely not be running a relay.

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Yeah I agree with that. We have incentive to run one to ensure reliability for our users, and our subscription pays for it. Apparently the largest legal threat is now “hosted encrypted notes” (wtf?). I never thought it would be a big deal since we do not host any media.