I love the general idea, but I think we should consider election of moderators by the worldbuilders. That's how a real cooperative would work, after all, and I think in general people can be trusted to vote maturely. Also, there will never be hundreds of RPers fighting over the positions anyway.
I'd considered the possibility of elected moderators but I'm uncomfortable with the idea. Proper moderation may require unpopular decisions, and as forum moderators they would be forum staff responsible for the upholding the registration agreement on the boards, though the second point can be mitigated with admins and global moderators, same as with elected moderators of government boards.
If they were to be elected, it should be with a super-majority, and removal should also require such a super-majority. Perhaps an at-large
approval vote with a super-majority threshold instead of a simple plurality one? Terms should also be indefinite until there's a vacancy or the moderators are dissolved by a super-majority vote.
EDIT: I accidentally submitted before I was done typing.