I'm interested what shape instance blocking will take, and if different people have different expectations.

• The simplest and most likely implementation will just be a block of all communities from an instance. If you blocked hexbear, you wouldn't see posts from any hexbear communities, but you still might bump into hexbear users on communities from other instances. You would then have to block users to remove them as well.
• However I think many people are hoping to be able to block all users from an instance as well. These people could easily end up disappointed.
• Then there's mod tools - obviously the mod tools currently are very lacking, but at the end of the day a user-created community should be under the control of its founder/mod team (within the rules of the instance), and ultimately if they want to block and entire instance's users that should be their perogative. If the users don't like that, then it's on the users as a group to create and move to another community without such a rule. However I won't be holding my breath for mod tools.