Sounds like you haven't met any reddit mods. And no, web3 offers nothing except the ability to try and control your digital currency and make money off you.
I think the tiny amount of power goes to people's heads. Power-tripping moderators of small subreddits are a dime a dozen.
The larger problem is that most subreddits are moderated by a handful of people, whose interest is expressly _moderating_. They don't care about the community. How could they, they have so many? And the power absolutely goes to their head.
It's really because most mods and tech leaders are the types of people that want to play everything like a video game and have everyone else just watch them play as a spectator...
We praise exec wisdom and foresight a lot, but in reality, the people who come in an sit for years in exec positions when no new innovation happens are just reacting to profit indicators and protecting the company for as long as they serve, while leaving a bunch of headaches for the next guy who comes in.
This is the age of "don't rock the userbase" boat in tech. It's only companies that disrupt the entire social media landscape as we know it that wins next, but given time, they too will screw it all up...
All of it repeatedly just reaffirming the true genius of MySpace Tom.