this post was submitted on 01 Aug 2023
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From the related post linked by op, it's described as just a portion of the managed instance hosting fee going back to the project devs. So if you pay them to host a lemmy instance, a small cut goes to Lemmy devs. Doesn't seem sketchy at all. Seems to have nothing to do with monetizing the instance itself, which could be funded by voluntary donations as normal or you could probably do membership fees as some instances do. It seems this is just about giving funding to the software devs. Hopefully this encourages other managed hosting providers to also give a cut of their revenue to the software they are using for their business.
To be clear, I'm not saying it is sketchy. I'm saying that giving absolutely zero information on a service they are ostensibly promoting makes it look sketchy. Giving even a simple breakdown of their goals and process is really the least they could do.