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Yes.
You can create your own server and disable signups whenever you want.
The gay mods can still defederate from your instance though
The part with gay mods is clear, but what do you mean by defederate from the instance?
You and I are both using Lemmy via the Lemmy.ml instance. If Lemmy.ml blocks (aka “defederates from”) another Lemmy instance, you and I won’t be able to interract with people on that blocked instance.
You can seen the block list here: https://lemmy.ml/instances
