I disagree with the premise here. I think the core mechanics of social media, ie instant communication between random strangers about random topics, creates toxic interactions regardless of whether it's manipulated by engagement algorithms.
Some of the most toxic conversations I've seen were on Mastodon.
If there's a healthy future for socializing on the internet, I think it will happen in small communities.
That will slow down dissemination of information, but maybe that would be a good thing.