Block avatars with "Nudity/Sexuality" check marked on upload from being used in public instances
it's moe
People are always going to want to make NSFW content for VRChat, just as they will want to in nearly every other social platform. Not only that, but they are going to want to have the opportunity to share the things they make with their friends.
Because of this, the easiest solution to keep the NSFW content from going public and allowing it to still be used freely would be to actually make use of the Avatar Tags during upload, and block the use of NSFW tagged avatars from Public worlds.
Not only will this allow people to exercise creative freedom and express themselves behind closed doors, but it will also be a more effective way of keeping things clean as temporary public world bans for the avatar creator is hardly effective for preventing long-term abuse, especially if it wasn't the avatar creator themselves who took it into a public world in the first place.
Having someone get dropped into the default robot avatar if they load into a public with a flagged avatar would be a very clean and easy solution, and will also work to reduce the moderator workload as those who properly tag their uploads will no longer be a concern. That way those who evade the restrictions by not tagging will still get reported and could even receive harsher bans for it.
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`Squishy
Makes sense honestly. Those who tag get a layer of security from accidental or unintended use, and those who don't/won't are just acting at their own discretion and risk already, as per the current system. Nothing to lose far as I can see it.
Keep in mind though that I believe that VRC classifies anything other than invite or invite+ as technically being "public", in regard to current rules on this kind of thing.
it's moe
`Squishy: yeah, the fact they consider friends+ public is exactly why i would want this feature personally; it even has more utility than just NSFW content too. sometimes i just want to share an avatar with my friends and only my friends (especially if it's not super well optimized due to the features available on it), and inv/inv+ is a good way to keep it from spreading.
xxx_red_xxx
Maybe also, for informative purposes, have it show a message on the screen along the lines of 'Your current avatar is flagged as NSFW and cannot be used in public worlds' as I can see some people being confused as to why they are suddenly in the default avatar.
Candy Pheonix
Although this is a good idea, you also have to think about the people that decide to ignore the avatar tags for two reasons ("if im honest, ill get banned for uploading it" or "if im honest, i wont be able to upload this avatar"), especially if they havent been informed that VRChat TOS allows for NSFW content as long as you keep it in (Invite or Invite+)
Verser
Candy Pheonix: simple if you upload a NSFW avatar without the tag and you use it in public. If you get reported for the NSFW avatar, the avatar would be removed from your uploaded content and a email sent informing you that you need to upload the avatar with the correct tags. Repeat offences would prompt further action. I'll be honest I have accidentally loaded into one of the my NSFW avatars while in public before and if they had implemented this all that would have happened is nothing. I think if you have the tag the avatar should be grayed out while in a public world preventing you from even attempting to use it.
it's moe
Verser: Yes, verser is spot on.
Not only that while there will be some people who choose to ignore it, the moderation workload will still be significantly reduced since generally more people tend to follow guidelines than not, and most NSFW creators I know are the ones who are most careful about never bringing their NSFW creations to public worlds. Of course that's some level of confirmation bias judging from the circles I'm involved with, but it's safe to assume that most VRChat denizens wish to keep their account functional.
Verser
it's moe: I know of one NSFW creator that was forced to remove all of his NSFW stuff because people keep taking his avatars into public world's. If this was implemented he would have been fine and not punished for the actions of others who didn't follow the rules as they would have no choice but to follow the rules.