I’ve heard some servers struggled or even had to shut down because of storage costs. But that was a while ago, so it may not even still be a thing anymore.
There’s the option of posting images to third-party services (like imgur or whatever), but I’ve been frustrated with not being able to see third-party images when scrolling the feed in Lemmy apps.
What’s the meta right now?
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SJW spends about 100CAD/year on image hosting, not that much compared to the other expenses of running an instance, so don’t worry about uploading straight to lemmy. If you want to use an external image host, use catbox.moe (also can be used for videos)