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the hosting cost is taken over by the blossom servers. at the moment the service is free, but i don't exclude at some stage they will start requesting sats or cashu tokens for the hosting.
You have a full list of active https://blossomservers.com/ here, you can see some are already offering it as service.
Something similar happened with nostr relays
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Looks interesting... I'd like to bookmark and add it to the list of things I need to test out.
There must be some kind of hosting costs?