It does. I don’t remember the specifics but I remember the devs talking about how they’re a hybrid of dedicated and host-connection servers. For things such as hosting the crucible game or most things public space pvp related they are hosted by bungie. Whereas things like raids and nightfall’s are more player based which is why you may experience a long loading screen if the host lags out and a new host must be selected. However, take what I said with a grain of salt because this is all from memory...nor do I work for bungie so I could be completely off base with the details. There are articles about it though if you wish to research it yourself