Please, tell me how “paying for hardware costs is enough”…
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You of all people here should know that the cost of running the service is not the real issue. Even if Mastodon takes 3x as much hardware to run as Lemmy, the cost of hardware is still pennies per user.
You are the one who brought the size of the platform as a reason for costs not being an issue here compared to Mastodon, so I assumed you meant that having more users would mean more costs for the admins?
Or do you mean that with more instances, there is a higher chance of some admin having issues covering the costs?
The latter.
