In this form of self-government, a lobby is a set of 21 people in an area. Similar to a county, but on a much smaller scale, each lobby governs their immediate surroundings. The 21 people are only responsible for their environment and their fellow members. In a sense, they act like a Homeowners Association. Each person casts votes at meetings for proposed ideas. For example, someone wants to cut down all the trees in a forest. For this idea to be accepted, a majority vote must be passed. But the lobby can only cut the trees in their designated land, preventing widespread/systemic damage.
Each lobby self-governs through a representative democracy. A majority vote elects a person to act as "host." The host organizes meetings, manages complaints while working to improve well-being. They only work for about 3 months, so hosts cycle quickly. The host can also be democratically removed by a minority vote, at least 7 of the 21 people. If a host is "that bad," they can be closed by a vote, preventing them from being a host for several years.
Their fictional nation is divided into different sectors, like Medical, Technology, Farming, etc. Each sector holds a number of lobbies. Most of the people in the sectors work in the sector's respective jobs. For example, in Farming, there would be mostly wheat farmers, but also tool-makers and agricultural scientists. When a citizen is old enough, they are offered the opportunity to switch sectors, so that each sector has an appropriate amount of experience.
Each sector also has a Quality Control Board (QCB) that works to improve production and well-being in the sector. It is explicitly separate from the lobbies. That is, a lobby deals with its own environment and people, while a QCB considers grander schemes such as education and resource allocation in its sector.
Lobbies are not limited to their area and often interact, with several forming cities. For a host to be elected to the Quality Control Board of a sector, they must be approved by a percentage of their town or city. I could go into far more details about what defines a town and the exact percentages, but let's keep it simple.
In this self-governing system, status is merit-based; No person can easily buy votes from hundreds of people. Hosts are quickly cycled through, avoiding unfavorable moderators. The high-up government deals only with high-up schemes, they cannot impact individuals through laws, only the system.
My question is: Can this system of self-governance work? Are there any obvious faults and necessities I'm missing that would ruin this government?