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I do expect mods to moderate for free, because being unpaid also means that they’re independent. That’s an infinitely better situation than having anonymous paid mods who are accountable to a single corporation.
The problem is that reddit wants to have it both ways: they want to control the mods and treat them as subservient employees, yet at the same time still reap the benefits of their free work as they fuck them over by taking away the tools that make their job easier.