You might have inadvertently fallen for the fallacy of composition. What to describe is only one type of algorithm; one meant to maximize engagement/revenue.
Mastodon has the potential for a user-centric "Bring your own algorithm" which may work similar block lists. Users could subscribe to algorithms matching their preferences by boosting or penalizing posts based on topics I like or don't like. This would be very valuable to me, and will reduce the need for moderation - I won't even see the random ragebait or porn spam