For example, if I run loop instance, I will reshare stories through my instance, the content will be downloaded from my node, not the parent one. Am I right?

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[–] poVoq@slrpnk.net 14 points 1 day ago* (last edited 1 day ago)

I am not sure if Loops mirrors content like that, but probably not (since video content is much larger).

Mastodon for example does mirror images, but it only really lowers the bandwidth use from users on your instance, hence a single user instance causes the same miniscule one time download of the image as a single client connected to the original instance.

Overall if you want to help the Fediverse network with load balancing you need to take on additional users on your instance, with all the responsibilities that entails.

Single user instance are nice for other reason like data ownership and being able to decide your own defederation policies and such.