I call this moderation system," Community Moderation". Here is how it works. Lucid isn't a "complete" moron in grimiore corpereal form, but, he hasn't discovered the social science behind his "social science website" he has here. I present to you,
Anarcho Moderation
This is how it works. Lucid hard codes a "Mod Channel" that each mod has access to. During account creation, players are asked what subject they find most interesting and are then sent to "that channel". The Moderators are selected as the most popular of that channel and mods can't "cross moderate".
What this does is allow everyone to hold double standards and not just the weebs and people with female avatars. When someone from one channel reports another person in another channel, the mods from both channels and a third mod from another channel, have to all rule on that same report. This way will keep double standards.
Make the channels all be something you could find off 4chan, anime, random, ect. Keep sandbox and don't make lobbies for these channels though.