Having read this, I get what they’re going for, but also question the venue a bit.
With Lemmy being about federation, it sounds like they want to have a de federated mini Lemmy to themselves where they can decide who is allowed in or not. Not that that is a bad thing, if there’s a demand for it, but I think it’s different than what every other instance is about and maybe would be better as something like a Discord server (or FOSS alternative).
Again just my 2c, I just know I’m looking for a better quality alternative to Reddit, and an isolated instance isn’t my cup of tea.