Private and federation are mutually exclusive concepts. Private instances are ones that intentionally don’t federate - like a private company community that’s locked to their intranet. For self hosted Lemmy instances you just need to close registration. Then since no one can apply, the only use case for email becomes the Forgot Password button for if you forget your password and at that point you’re better served with a password manager.
Private and federation are mutually exclusive concepts. Private instances are ones that intentionally don’t federate - like a private company community that’s locked to their intranet. For self hosted Lemmy instances you just need to close registration. Then since no one can apply, the only use case for email becomes the Forgot Password button for if you forget your password and at that point you’re better served with a password manager.