So the way federation works, that just kinda naturally happens as nsfw instances are fine with each others’ content and other instances aren’t.

lemmynsfw isn’t being blocked from all federation, it’s just one big instance that won’t federate with us. That means users on that instance won’t see content from here, and that comments from accounts here won’t make it to that instance.

Any other lemmy server, such as other nsfw instances, are perfectly able to federate with us.

Personally I think the defederating is the bigger issue, but that means it definitely could be important.