> he biggest and most un-resolvable problem will be in the inherent structure it will establish, which will be reinforced by expected self-serving behaviors....

> This model, as I think your describe it, basically sets in motion the creation of dynasty's

I am not sure if it is the biggest vulnerability, as I explained another one in my comments, but I agree this could be a degenerate outcome. Afaics, we would incentivize a top-down rigid structure, which I also mentioned in my longish comment post.

Btw, I didn't upvote for your algorithm suggestion, which sounds to me like probably not correct.