Here's the blog post: https://blueskyweb.xyz/blog/4-13-2023-moderation
tl;dr They don't really say what they're doing _right now_ in the app (but I think it's a mixture of automatic labeling of e.g. porn and manual labels); but the gist is that it will be completely modular so people can use whatever they want to, or a mixture of manual (including community-based and user-based though no UI yet for that) and automatic.