Fediverse traffic is pretty bursty and sometimes there will be a large backlog of Activities to send to your server, each of which involves a POST. This can hammer your instance and overwhelm the backend’s ability to keep up. Nginx provides a rate-limiting function which can accept POSTs at full speed and proxy them slowly through to your backend at whatever rate you specify.
Thanks for the clarification! I’m inclined to agree here, small risk of data loss but failing to receive updates all together during peak burst is probably much worse.