I think it's fine the way it is. I think Cyp is fine putting atleast 6 users in the moderator group each month.
Neutral Maybe moderators (experienced ones) could suggest to cyp who they think is good, and Cyp could take it into account.
Touching on what @Scorvix said , good moderators are better than a lot of moderators who are lost as sheep. More higher-ups who are able to promote moderators would just promote a lot of applicants, most of which aren't worthy but seem worthy enough. No Support.
Maybe not a problem with me, but why won't you go run a server with a few hundred people on daily and then just trust people out of nowhere. You want to go from 5 to probably 10+ thats double. Remember that.