Unless there is some kind of cooldown time (but even then), mods will constantly change...

Group A votes Mod B off and places Mod A there. Group B doesn't like that and votes Mod A off and places Mod B (or a similar) back.

The longer that goes on, the more users (and even Mods) will get annoyed and leave that sub. There will probably the be originalsub, splitsubA, splitsubB. All of these subs will be weaker than the originalsub was before.

So basically the same what we see in current politics. Instead of finding a solution together, it just creates larger gaps between the members.

It feels less like democracy but more like temporary dictatorship that oscillates between opinions.

A better solution would be to have multiple mods with different opinions finding consensus together. But that's easier said than done...