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So what happens if Ned decides to delete the site or starts banning users? Is there a back up plan? Can and will another domain be used?

Then users can use any of the other interfaces to the Steem blockchain: Busy.org, SteemConnect, Vessel, (and many more).

The beauty of Steemit . . . users ultimately decide whether material is appropriate or not (by up/down-voting.)

We essentially police ourselves.

Yeah, but the new TOS says users can be suspended and banned and the whole site can be deleted and Steemit is not liable for any losses.