There is no population cap in nationstates. According to the website, I have 1.5 billion citizens, yet I am only in the 52nd percentile. Not only that, but roleplay is incredibly difficult when you gain 2-5 million new citizens every single day. This makes entire economic, electoral, and military systems incredibly difficult to work around. What is stopping my juggernaut nation, with conscription, a huge military (top 5%), and a massive economy (top 15%), how can any new nation withstand my military might? I haven't even gotten into the issues with having a planet with tens of billions of people.
Section 6 says that existing rules remain in place. Since there are restrictions to 500 million people (with maxed out plot claims), what happens when we surpass 500 million? Will half our nations be stuck at 500 million? Can we set it to whatever we want?
Lastly, new players shouldn't be forced to roleplay as a city-state like Singapore or a sparsely populated country like Mongolia. 5 million is not that many.
2. Changing policies is not dynamic and is accident-prone
It will be quite difficult to reverse nationstates policies using this system. To remove or replace a policy, you have to wait until you get an issue that has the ability to enact or reverse policies, something that can be incredibly rare. For example, on the website I have the "Devolution" policy which states that the federal government has delegated significant power to local authorities. I don't remember when I got this policy, I haven't gotten any issues which can fix it, and it certainly does not reflect my government structure in canon. The inability to easily switch policies is a very real problem. If, in roleplay, a party wins the election and wishes to repeal euthanasia (a policy which I currently have on NS website), I will have to hope that I luck out and get an issue to fix it. Policy changes and declarations which happen in government aren't accurately reflected.
Furthermore, it is possible to enact or change policies by accident. My ruling party is pro-capitalism but is in favour of nationalizing key industries. When I got an issue which had such a resolution, I picked it. Rather surprisingly, my nation turned socialist with a planned economy, and I had to wait until I could turn capitalist again. Punishing roleplayers for such mistakes makes no sense to me; there are no mechanisms in place which account for these problems.
3. Other content issues
As brought up by others, giving moderator power to elected administrators puts the discord itself at risk of raiders. This is a major problem, as most of our roleplay is done off-site and can be deleted. Section 3 also raises issues with accountability, as existing mods can simply give their powers to someone else.
Section 5 is confusing. If existing RP becomes canon, isn't this entire bill null? If I say my book publishing industry is not in the top 12%, how does this bill function? Is it whatever I say it is, even if nationstates says otherwise? Does it stay under 12% until I raise it through nationstates issues, where it then canonically jumps up? This is unclear.
How will we enforce section 2? Will admins have to check nationstates every time someone does worldbuilding to ensure that it is legal?
With respect to s.1.iii, what happens to people with multiple accounts? If I have a main nation and a second nation, and the second one CTEs, am I still kicked out? Also, what if the Founder CTEs? We can't kick them out of the discord, and we probably shouldn't anyway. If a moderator's nation CTEs, wouldn't kicking them out make the discord less safe?