Communism will never work for an entire country, because it's involuntary. If you don't want to be a part of communism, you can't "simply leave". You either suffer through it, get executed, or in an ideal situation, you pay money to physically leave your country (possibly leaving behind family, home, or other priceless things). If you like Communism, you stick around. All the money goes to a central pot and ideally, everyone gets what they need and the surplus is thrown in a chest. Government officials are needed to work full time, because running a country is hard stuff. Inevitably, the government will realize they have access to a ton of money, and they'll lie to themselves that they deserve more than everyone else. Communism breaks.
But let's take a look at the Communist Collective.
It's voluntary. Everyone who is a member of the CC has said "I am willing to give everything I have for the betterment (crap, that's a word?!) of the community." If you don't want to be a part of it, never join. If you want to leave, leave. It's not difficult, you don't have to pay for transportation, and if they kill you? You respawn seconds later. Those who join put all their possessions in a central pot, everything gets divided equally. Surplus goes to an LWC. Government officials are required to interact with the higher powers. If you can decide to make a township with all the perks without having an official mayor/SiC, please let them know, I'm sure they would welcome that! What does the mayor/SiC/council spend their time doing? Paperwork? Sitting in offices? This is Herocraft, they can't do those things. They're out there working with their fellow citizens. Unlike a country's leader, CC's "leaders" have become true peers with their citizens. They really are equal in what they have and what they do. They have additional responsibility because they need that for Herocraft and to protect CC from raiders. They are not rewarded in this; they still work like anyone else in CC and they get the same supplies. Corruption is a possibility, as in the real world. But they seem very genuine, and the chances are much lower since it's just a video game.
I am not affiliated with the Communist Collective in anyway. This is just my interpretation of the situation. I believe that the CC will succeed and will be very powerful in the new map, but not in an oppressive way. I look forward to seeing what you guys accomplish.
And please correct anything I said that was a lie, and I apologize for any inaccuracies.