That is just a thought experiment, though, I do not believe it would play out beneficially if we tried to implement it in real life.
What's the best way to have a sane system? I'm not sure. I personally lost all faith in democracy.
If you're not into social and demographic engineering, then you're going to face a real problem.
My solution would be to get it over with and shoot everyone who disagrees with the system I'm trying to build. It sounds childish but it does actually genuinely work. It has been put in practice in so many places it's easy to lose count.
Sure, they might be better informed - which lets them figure out how best to corrupt the system.
Edit: in fact, I could see a strong reason to DISALLOW anyone in the top 1% to vote or spend any $$ towards the election.
Some of those people are not white and/or not straight. They - very incorrectly - think that wealth will shield them from the sharp teeth of White Christian Nationalism. They should consult with the Log Cabin Republicans and women who voted for both Trump and enshrining abortion into their state's constitution on the same ballot.
But the point is they're less likely to get there if they're part of the power structure.
A presumed but frequently not mentioned component of democracy is the peaceful transition of power once a decision is made.