As far as I know, that makes it scale like email. When you post something, your host sends it to all recipients - everyone who subscribed to your posts.
That does not sound like a lot of traffic. Even if one has 10k followers, as the post would only go once to each of their hosts. So if the 10k followers are on 100 hosts, that means 100 messages.
But if that is their plan, why would they have used ActivityPub in the first place?
So I guess they could just shut their door as soon as the traffic is too much for them to handle. And tell people to look for another host or host themselfes.
Also are there any other server instances other than the php server? Seems like they ought have used the matrix protcal instead of active pub. More server implementations in different langs, and it has e2e build I. Don't think actpub has that.
I'm not sure what you mean by that but the media blobs (photos and videos) are not "federated" (i.e. passed around instances) most likely, but hosted in one place (the instance of the author) and referenced by their URL.
We can then also observe other comments clarifying that no, there aren't 500K instances.
The other comments provide...tweets? mastodons?...from the maintainer also clarify that in practice, there's 1 instance.
People are questioning how that will scale, and the tweet from the maintainer was cited as part of that because the content of the tweet is that tl;dr there's a $2,600 month gap between Patreon and hosting costs.
briefly searching through github issues, i believe pixelfed does not cache remote media. discussion on this issue about remote media cacheing seems to indicate that pixelfed only caches avatars https://github.com/pixelfed/pixelfed/issues/4571