[johannes1234321]

Paying .kids for the large subreddits won't cost that much.

However doing that makes the company directly liable for all things. Right now they can at least try the legal argument "we just provide infrastructure and oh we didn't know what was uploaded there" as soon as they moderate themselves that blind eye strategy can't work at all. (Right now they can at least try it)

[paulmd]

No it doesn’t. Do you think Facebook mods are unpaid?

User content is the safety line, not whether the platform pays moderators.