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It's possible. I think the biggest obstacle is that the corporations feeding on people's data are not going to just stand by while it happens.
And do what? Make a better product? The beauty of Capitalism is that consumers really are the final say on whether your product succeeds. You can make an app with as many addictive hooks as possible, but that doesn't make those users permanent. And any sabbotage by Reddit will only dig in our heels at this point.
I hear what you’re saying, but Lemmy was created to oppose the capitalist exploitation cycle. With Lemmy, we aren’t consumers or a product. Lemmy is actually firmly rooted in anti-capitalism and arose because capitalism destroys choice.
Capitalism isn’t necessary for innovation. It is just the private ownership of things. Spez didn’t make Reddit great, for example. Other people did. Spez is just a do-nothing owner who is now the mouth piece for bigger do-nothing owners looking to wring out maximum profit from unpaid laborers.
I’d argue that capitalism stifles innovation, which is why everyone agrees that you need competition. A market economy. And broad anti-trust regulations, since capitalism is inherently authoritarian since it is a top-down hierarchical structure. A free-ish market is what allowed us to innovate so quickly.
But Lemmy is outside of that since it isn’t driven by profit.
People use "capitalism" in different ways. The person you responded to probably meant it as "free marked system", which Lemmy absolutely fits into. Often "capitalism" is used to mean "profit seeking system", which Lemmy doesn't fit into.
Both of these uses are common.