Setting up server blocks, which domain?

I’m currently at DigitalOcean Droplet Deployment | Strapi Documentation
When the tutorial said References to your_domain in "Step 5 – Setting Up Server Blocks" should include the TLD, (e.g. example.com). Do I have to add the root domain as well? Even if I’ll have all my Strapi and DigitalOcean setup as Subdomain? My root Domain will point to another IP, so that doesn’t make sense to me.

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