Earlier I wrote on how, in most virtual worlds, the ``hard-wired'' factions, those which are defined by the game iself, such as The Alliance in World of Warcraft, can often be safely ignored since they don't really do anything. That is not always the case. Matt Mihaly, founder of Iron Realms Entertainment, has a degree in Political Science from Cornell University and has found excellent ways of including Government into the Mud's he's designed. This bears some consideration as player-based Government, as implemented via ``hard-wired'' factions, can be a Godsend in establishing and maintaining player culture(s) in your virtual world.
A player-based Government legitimizes and channels political play into a sanctioned arena. There simply are some players who wish to engage in politics, that is the orchestration of collective action, so why deny them the opportunity? You are making a virtual world supporting many players, which means politics will emerge one way or the other. The question you can ask yourself, will it be along the lines of The Lord of The Flies or The Federalist Papers? If you want the former then fine, and you can stop reading now. I would prefer the latter.
A player-based Government is also your greatest asset at managing the culture within your virtual world, albeit from one or two degrees of remove. The players who occupy the various Governmental seats are trend-setters and opinion-leaders. When the King of The Great North rewards someone for raiding the Central Plains, then he is encouraging more such raids in that culture. He is saying ``This is what we value''. By the same token if The Grand Emperor rewards someone for publishing a play, then he is encouraging more such publications in that culture. He is also saying ``This is what we value''. As a designer you must approve, because otherwise you would not have included the ability to raid farmers or publish books.
This cultural development and enforcement extends also to deterrence. When the Grand Duke rebukes someone for raiding the The Great North, then he is saying ``Don't nobody do that'', and when he actually punishes someone then he is deterring other individuals from doing the same. The opion-leaders can offer both carrot and stick to shape and enforce the specific cultural norms they desire, which are founded on the broader menu of cultural norms you, the designer, have established. If you didn't want people raiding then you wouldn't have included raiding, but you did include it so therefore you must desire it.
For this to work one must understand it absolutely requires PvP. That just means ``my character can do stuff to your character''. It is difficult to reward someone if I cannot give an item to him. Sure, I might ask everyone ``At the next Boss raid, everyone let Fred pick first. It's his reward!'', but it is much better if my character can directly gift an item. The same holes true for punishments. I could say ``Don't nobody heal Fred during the next Boss fight'', but how would enforce it? Also, maybe Fred doesn't want to risk being ignored by the healers, so he doesn't show up to the Boss fight. How can I compel him? For this to work, I should be able to wuss-slap Fred in order to maintain order. If there is no ``friendly fire'' then it is impossible to discipline Fred. Fred can just do what he wants w/o fear of reprimand.
Now you might first think most people would shy away if they learned virtual Government could beat up or kill their character. This fear is unfounded. Most punishments are typically fines intended along restorative justice. If you cheat Fred, then you have to make Fred whole plus a little extra to teach you a lesson. Violence only comes up when someone refuses to pay their fines. Sure I have had characters slain to teach them a lesson, and over the course of multiple decades I can say the punishment was never arbitrary or heavy-handed. Offenses to the state were usually resolved by doing something nice for the state rather than getting beat up. Also, in a modern virtual world of plentiful healing potions and extremely lax death penalties, violence for deterrence or punishment is quite overrated; it amounts to a wuss-slap.
Naturally interest in political play, like all other forms, falls along a continuum. It's not for everyone, so some will be satisfied with only a tiny bit of power, perhaps because that office is a pet-interest to them, and others want to command the whole show as The Big Guy. People will determine their comfort level for theirself by dipping a toe into the political waters and testing things from there. In order for politics to be at all feasible, any offices or positions you create must have actual power. Power is not found in a title, but the actual physics of the virtual world. The sort of powers you'll include in your virtual world may vary from others, but these will typically be the sorts of things one expects of Government such as zoning areas for commerce (more shops) vs residential (more housing), or providing for the national defense (laser turets or enchanted statues) and offense (the fighters and PK'ers), or establishing good relations and trade agreements with other powers, etc.
Whatever powers you grant Governments you must next consider how they shall be devolved and split about. In the Real World we divide our Governments into several branches. This is because the stakes are quite high in the Real World, so we'd all prefer Government acted only after deliberation (so two chambers in our Legislatures), we limit the Executive by binding him to the established laws, and even then further protect oursleves by establishing an independent Judiciary. All of this is largely unnecessary in a Mud. Yes, in the Real World we all agree the people who decide the laws should not be the people who enforce the laws should not be the same people who interpret the laws. Honestly, you can skip the Judiciary in your virtual world. No player has time for an actual trial given how slight most punishments are.
There is nothing stopping you from consolidating all legislative and executive power into a single individual. If you have a small population when you first start out, this might be the only feasible approach to Government. However as your population grows, more players will want to try their hand at politics, and so you'll be forced to devolve powers. Typically you'll want a plurality in the Legislature. Weather you call this group of people a Council or Senate or Parliament doesn't matter. Their job is to come up with resolutions (opinions on the way things should be, or ought to have been) and laws (the way things shall be or else you'll get it). If they must be unanimous then expect very little to get done. You might like that. If a simple majority is sufficient then expect too much to get done. You might like that too. A good suggestion is to require a supermajority. This guarantees broad support based on consensus. A single executive is sufficient. There are some nations with a dual-executive. In the Russian Federation, for example, the President and the Prime Minister are two different people, with powers divided between them rather than shared.
Your players hail from the Western Democracies, so they'll expect democratic norms. Or at least a fig leaf and a nod. This can come directly against some of your other goals. If, in order to better cement the various factions into your virtual world, to prevent their sudden departure with 25% of your players, you might decide that each of these factions, or those with at least X members, make up the legislature. This will require those delegates to be elected somehow. At one time each class in Lusternia offered it's own guild, and each guild elected a member to serve in their national council. This is not the only way. For example, one could define multiple chambers, and the guildmasters might appoint their delegate to House of Trades and the People might elect representatives to the House of Representatives. Great Families might appoint a delegate a House of Nobles, etc. I caution against such complexities as multiple chambers. So long as everyone can vote for someone to represent them specifically, it doesn't matter if their vote is transmitted through their faction, such as Lusternia, or directly applied via public ballot, as we do with our Town Council in the Real World.
The number of seats in your legislatures don't have to be uniform between all nations. Some places can have more than others, but the number of seats for any particular place should not be arbitrary. When you grant seats to each Great Family, then you are saying something about the nature and origin of the true power of that nation. Likewise, you are saying something about the origin and nature of the true power of a nation when you offer some number directly to the People.
There is much more freedom with the executive. In the United Kingdom, the Prime Minister is not defined by Constitution but instead honoured from Long Tradition. The true executive, the Monarch, who actually is defined in the Constitution, does not actually rule directly. The traditional form is the Monarch asks the person whom she thinks carries the greatest respect in the House of Commons to form a Cabinet of Government and to rule in her name. What really happens is there is an election and she invites this person, regardless of whom she thinks may or may not command the most respect. This person stands between two worlds, directing both Legislature and Executive departments. It evolved over 300 years of history, and is all rather convoluted for a Mud. We who design a virtual world enjoy the luxury of Hamilton and Madison and Jay: we can start from scratch and prescribe the Best Practices immediately rather than waiting for some evolution. In the United States we have a unitary executive. This simplifies a lot of things! The means of election are complicated by neccessity in the Real World, but can be simplified in your virtual world. In the Real World, the President of the United States presides over the several Sovereign States. Therefore a mechanism was created to require the majority of the states to approve the candidate to office. Since each state is permitted to decide how her ballots are cast, most states have devolved that power to the People, so we presently have a system where the majority of people from the majority of the States must approve the candidate to office. With the exception of Trump, this has thankfully led to a very long sequence of decidedly centrist Presidents. But this can all be skipped. In your virtual world, the People of the city or kingdom or whatever should simply have a direct vote for the executive.
Mihaly recommends hierarchial divisions rather than federalist divisions. This means instead of individual, stand-alone mayor positions throughout the kingdom, as we have in the United States, a more fuedal system where a mayor reports to a Count who reports to the King. This way new people can try just a taste of power to see if they like it, and it also provides a means of vindication or restoration of those who fall from the national stage. Mihaly also refuses any special ``politics'' skill so that any player of any type can jump into politics if they like. Mihaly has designed and produced several Muds so he may know what he's talking about. Star Wars: Galaxies flatly ignored this advice. Koster not only created a special class, Politician, who can only establish settlements, but also went with a Federalist approach in that each village was a soverign unto itself, and none stood above another. Naturally this didn't stop various towns from trying to act in concert, but without any means of coercion things functioned as a confederacy. See, rebel town A could not use threat of force to compel rebel town B to obey a treaty commitment, for example, because A would find itself an enemy of the Rebellion if it attacked B. So violence between towns was largely unknown.
Finally a word for direct democracy. If the population of any particular nation is kept to fewer than 2,000 or so, then direct democracy might be feasible. Naturally it is best if at only a few hundred, perhaps no more than 400, but it is possible. There is one Mud operated by Iron Realms Entertainment, Starmourn, which bears special consideration. There are three nations within this Mud. One has unified all power into a single Despot. One has an single executive and legislative council. The third is direct democracy. To my experience, no nation enjoyed a political advantage over the others. Regardless of mechanism, each nation was able to maintain their culture by sharing rewards and meting out justice.
