@stribika It works like that on some servers. In some countries you can quite easily set up a democratic association to own and manage domain names and servers and other infrastructure, with bylaws and yearly or biyearly meetings for all members where you elect a board and possibly the admin/mod teams. You might even pay electees from membership fees if that's your fancy.
Some instances do votes in the full membership for defederations, specifically. @dymaxion @akareilly