Agreed there should be no flagging system, everyone needs to take personal responsibility. Censorship is what this platform should avoid at all cost, because that is the reason people are coming here, well one of them. No one wants censorship, we are all tired of that. in a free market there is no need for a system of coercion, it balances itself out.
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Having no flagging is the reverse form of censorship. Since it takes the same voting power that you can upvote with, it costs a user directly to employ it. It's just another form of voting stake.