You have different levels with guild defined titles and privileges. Some privileges are effectively mod abilities, but others are more enhanced user abilities.

The idea is that a sub could assign mod ranks in a more transparent manner while providing means to kick out non-performing mods easier.

You could also have a selected user base be able to vote on policy so that mods have a better understanding what the user base wants.

It isn't a perfect system, but better than the first system we have.