What if there was an immediate tangible money benefit to voting
Something a bit like betting on a horse race?
The problem with this in the past was that someone had control over the money and could influence our votes, but what if Steem could be coupled with some sort of psuedo-decentralized identity system to give people money for voting?
What if politicians got paid for successful proposals
The more that constituents liked an idea and thought it was successfully implemented using prediction markets the bigger the pay out would be to the politician(s).
A lot of people complain that government is a revolving door, well now it would be possible to become a well paid politician and not sell out.
What if there was no direct tax
Like in Steem money would just get produced from inflation in the system, those who stopped voting or didn't bother to delegate would eventually get eroded out of the system (easy way to redistribute political wealth of someone who has died). The system would need to be tweaked here and there, and we would have to figure out some of the details but essentially this could work.
The demand for the coin would be driven by people needing some basic amount for services tied to the successful proposals as well as revenue that proposals when implemented may bring in (for example a toll highway or advanced classes at some school).