Meh. I kind of like this idea. But, it would need to have some serious staff-refining if this idea where to be used.
It's always important to have a mod that the society favors, and who is also mod-potential. However, if this where to come into play, then it would be smart for the staff itself to choose potential moderators, and then for the members to vote on them. Members posting the nominees would turn into chaos in days.
Also, elections shouldn't be for every new mod. If at all, they should be bianually at the least and anually at the most in time between each other.
Sometimes mods are needed, and the public can't do anything about it.