Mastodon has plenty of moderation: every instance has it's own people, when questionable content makes its way from a non moderated instance to others, the moderators of the others can moderate it. If an instance receives moderation requests from the rest of the fediverse and doesn't act on it, it eventually gets defederated.

Having a process that distributes the load of moderation is better, IMNHO, than piling all that work on underpaid people.