To be fair, it works, it just doesn't scale. There are some communes that run close to an ideal communist economic model. They tend to fall apart around 150-200 people. Not really my field; but I've heard some speculation that it has to do with humans having lived in similarly sized clans until recently, and with us not being able to maintain relationships with many more people. Get too big, and society starts to have "strangers" that manipulate other "strangers".
If you think you can solve the scaling problem, get 1000 volunteers and see if you can run it in an intentional community first. Then maybe you can try a city with all volunteers. If it's such a good thing, you won't have any trouble getting people. If it sucks and nobody wants to sign up you need to debug that AI.