Far too often, lately, I see lots of people worried about the number of downvotes, or making preliminary justifications and requests to not downvote particular posts.
Me? I don't have to think about any of that. The content of the posts and comments determines their quality, not some artificial number that only represents whether people dis/like something.
Edit: Wow, a lot of people from other instances seem really offended that I don't like downvoting and seem a bit confused that I'd be thanking my admins for something I appreciate.
If you like downvoting, you don't have to move here. Enjoy your instance's features. Welcome to the Fediverse.
Yes. Downvotes would be shown locally only. So it's only your instance.
That's because where communities are 'hosted' act as a central authority, think a web with the host in the middle, instead of a completely decentralized version.
The beehaw incident defederation post over here: https://reddthat.com/post/35325 goes into more detail about the inner workings of communities.