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I think it’s susceptible to the same problems we have now. Elites gonna form and do their thing. Whether they’re in the party or on the board of directors, the effect is the same.
I think we’re just way too naive about systems. We expect them to work for us without putting in any effort. We should stop focusing so much on systems and start focusing on communities and cultures.
The best societies have tight-knit communities and a culture of cooperation. You can’t achieve that by passing laws or writing a new constitution or whatever. You have to get buy-in from everyone.
You're describing high trust societies I think. (1).