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How does the Mastodon algorithm compare with, say, Twitter?

It doesn't, because there more or less isn't one.

There is no suggestion algorithms here, no promotion, no ads. This is a community. You can be more of your true complex and unique self. Engage with others genuinely. Follow others you like no matter their followers count. Describe yourself and what interests you in your bio, you are not as limited by characters count here.