How are new Lemmy instances first integrated into the network?

I was told that I should post this here.

cross-posted from: https://lemmy.world/post/932750

Say you decide to self-host a Lemmy instance. When you create that instance, do you immediately need to download and store all the data that has ever been posted to all federated Lemmy instances? Or perhaps you only need to download and store everything that is posted to the federated Lemmy instances from that point forward? Or better yet, do you only store what the users on that instance do (i.e. their posts, and posts to the communities hosted on that instance)?