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this post was submitted on 12 Jul 2023
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Still that would be incredibly low for today's standards where images can weigh multiple megabytes compressed. I think 5-12 megabytes per image would be a reasonable limit.
I think the idea is to keep instance hosting down so as to minimise strain on the servers. Again, it probably does vary by instance. Reddit never used to host anything in the early days, that's what imgur was for.