Subsidiarity
The core principle is Subsidiarity: decisions should be made at the most local level possible. A small community node can set its own moderation rules and cultural norms, without imposing them on the entire network. However, for issues like protocol upgrades or security, coordination happens at the federal level.
The Fediverse (Mastodon, etc.) is the current best example. Instance administrators are sovereigns of their domain, but they choose to "federate" (connect) with others. Defederation—cutting ties with bad actors—is the ultimate disciplinary mechanism, replacing central censorship with distributed shunning.
Mondragon Model
The Myceloom approach also draws on the Mondragon cooperative federation in Spain, where over 100 cooperatives act independently but share banking, education, and R&D resources. This proves that you can have scale without centralization.