My only concern with the post is the kind of how it comes across that you’re aiming for a pretty specific group of people to be moderators, if not intentionally, then by result of what you’ve laid out.
When I was moderating as a community moderator for Riot there was a similar view of ‘moderators get to put forward other community members to be moderators’. Literally all this did, and all I’ve heard this ever doing in other communities, is creating a very gatekept community team where who you know becomes way more important than how good you’d actually be at a moderator, and so also reinforces acting in specific ways to ingratiate yourself to the people with more friends on the team.
The other much worse part of this, is that it always leads to the moderation teams being extremely un-diverse. A moderation team, in-house or volunteer base, needs to have a decent amount of diversity in it, otherwise you just wont ever meet your criteria of no bias (I mean realistically you’re never going to meet that goal, but you can work towards diminishing the effects of it; one of the best ways to do so being in making sure you get a diverse moderation team). But the problem of preferring people who are already very active within a community, and leaning towards people who get recommended by the people already in that team, is that you don’t increase diversity, instead you hinder it. If your moderation team is based on people already active in the community, you reinforce exactly what you have.
None of this new however, and I’m sure you’ve thought through this stuff, but how it’s described in this post is kinda making some red flags appear; at least based on my experience moderating in various sizes and various types of communities.