I am less optimistic about that. I theory yes, but looking at the way people in the Mastodon federation go about defederating entire instances and any instance that still federates with said instance because they don’t like some specific person’s opinion…

Moderation isn’t really solved by federation, it just makes it harder to get enraged about this single face-less entity that does all the “censorship”. But that doesn’t mean instance moderators are not subject of plenty of accusations of “censorship” and “political bias”.