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The problem is ANY change to how up votes people come up with can easily circumvented simply by a person using multiple accounts.

It isn't that people don't want to fix it. It is simply that no one actually has come up with a solution that would actually work that can't be easily gotten around, or that doesn't introduce even nastier exploits.

It is without rules and government. Each person is to use their upvotes and flags combined with their stake to influence the site.

The idea is to create code that doesn't require rules. It is an experiment. The figuring it out is messy and in my opinion part of the fun.