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Reddit demands moderators remove NSFW labels, or else
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this post was submitted on 07 Jul 2023
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If the theory were true, it would have nothing to do with caring about app developers, but protecting a revenue stream.
It is unlikely, but why else would they limit NSFW content from third parties? If they outright want to extinguish them why bother implementing any sort of API cost model - as you said, it's not like they care the app developers.