That is a similar issue Wikipedia has. Being a mod is fine, when your role-profile is clearly defined. But sometimes mods evolve into bureaucrats. And at a certain point, they take over a platform, mostly in a cultural/role-model sense. Then active contributors [also mods, but not obsessed with rules and enforcement] are being sidelined and start to quit.

This is a hard-to-solve problem for any community. Having lax regulation leads to scammers gaming the system. Having strict rule enforcement leads to a culture of punishment and death-by-process.

There is a place for people like this in organizations (controlling, lower management) -- here they actually can provide value being a process-oriented control-freak. In communities these roles can become toxic if they start to dominate the culture.

SO is dead to me since the bureaucrats have taken over, Wikipedia too for that matter.

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[0]: people who value 'processes' more than outcome.