I’d advise against doing any mod actions from a non-local account until v0.18 is released due to this bug in previous versions: https://github.com/LemmyNet/lemmy/issues/3075
TL;DR: Any change to a community by a non-local mod makes it “homeless”, breaking federation.
Tbh I think the display names as they currently work are dangerous. What would prevent me from setting my display name to
nutomic@lemmy.ml
? Most front-ends would not show that I’m actually not you at first glance.Edit: Misread the question as being about display names. Full unicode support for usernames would be even more dangerous, basically opening the door to unicode homograph spoofing on that level too.