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We need a new Explore-Feed (similar to Mastodon), which consolidates the All- and Local-Feed
(lemmy.world)
The All-Feed is very important to increase the content-quality of the threadiverse and therefore, ensure its existense. However, for smaller instances, there is only limited reason to put the All-Feed prominent in their UI, because their posts will never be present there. However, if they push people toward their the Local-Feed (which they currently do), people will only stay on their instance and overall discussion quality declines.
So, to truly overcome instance protectionism, we need a new feed, in which an instance can find a good balance between showing content from other instances and its own.
That should be given by the sorting-algo you chose. Merging local and all is additional to that so that you don't have to skip back and forth all the time.