The easiest way to preserve quality on your thumbnails is to upload to my hosting service (hint: you have used it before, and the person with full quality thumbnails is probably one of our customers), at uploader.oneloved.tube. The cost is way lower than it was before, and the new payment system is much easier to use. Besides preserving thumbnail quality since day one, now all videos uploaded are stored on both IPFS and Skynet which means they are in multiple places.
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