After a site is graduating, its moderators appear to be elected for life or until they step down.
What are the steps for recalling a moderator that the site's users no longer believe represent the site's best interests?
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The best way to recall a moderator is to email [email protected] (or team@[sitename].com), with the following details:
A detailed description of the behavior that you consider "not in the best interests of the site," along with the appropriate links to the posts illustrating such behavior.
A statement explaining why you believe the behavior is not in the best interest of the site, and why it is severe enough to warrant a recall.
Of course, before you do that, you might want to post a question on the specific site meta about the moderator and their actions, and see if the moderator is willing to engage in discussion about the behavior, or provide an explanation.
Moderators are elected by the community; this is a representative democracy. To avoid moderators' decision-making process from being influenced by the need to constantly be re-elected each year, the position is (more or less) a permanent one, for as long as the moderator is willing and able to perform their duties adequately.
Moderators do not set policy; rather, they enforce the policy that is set forth by a process of community consensus and dictates by the SE staff.