(This will likely be a bit before it's implemented: fair warning. But well before 1.0.)
Not only should this follow the AP spec of not allowing a blocked user to interact with your posts, you shouldn't see posts from them either. Ideally they would never be able to see anything from you but I don't think we can control that on other servers.
ie: User A on Server 1 blocks User B on Server 2. Server 1 can implement "don't want to see or be seen" behavior, but Server 2 wouldn't know about the block. So if User C on Server 2 follows User A, A's post would still federate to Server 2 and could theoretically be seen by B.
One solution could be to federate block lists, but I'm not sure that's a good idea. That portion is likely beyond 1.0.
(This will likely be a bit before it's implemented: fair warning. But well before 1.0.)
Not only should this follow the AP spec of not allowing a blocked user to interact with your posts, you shouldn't see posts from them either. Ideally they would never be able to see anything from you but I don't think we can control that on other servers.
ie: User A on Server 1 blocks User B on Server 2. Server 1 can implement "don't want to see or be seen" behavior, but Server 2 wouldn't know about the block. So if User C on Server 2 follows User A, A's post would still federate to Server 2 and could theoretically be seen by B.
One solution could be to federate block lists, but I'm not sure that's a good idea. That portion is likely beyond 1.0.