If we're to take reddit as an example moderation happens by individuals rather than all members of the community. And as such it is open to abuse whether it happens or not.
I thought about this for a long time and decided to write up what I would consider to be an acceptable framework for any given social media platform which would:
1. Help define the Overton window in a more organic fashion
2. Allow the platform to function within different jurisdictions.
3. Remove the overhead of central administration and opinion checking.
If it helps, I wrote it up here: https://gist.github.com/TheMightyLlama/bb77a05d3dde4da251142...