Cool, now that we're past reinventing the wheel with "something must be done" kind of observations and +1-ing eachother, the actual ideas for solutions can flow. A few reminders to help figuring out where to start:
1) Last significant change to the officialdom maintenance process I recall was the Faction Status Report system in 2016, lasted just a few months. People wanted a review system based on quality rather than on quantity, which gave factions and leaders some extra monthly paperwork. Didn't really work out, so we got back to the easily quantifiable, evaluable and administrable features, like online time.
2) Near all benefits of being official were taken throughout the years following debates by elitism-criers, abuse-shouters, equality-warriors, the rest has either become obsolete or barely used for similar community backlash reasons. There are still people in this community not trusting anyone with much more power than what anyone can get by default, keep that side of the coin in mind when giving OFs their long-deserved love.
3) We have a shrinking playerbase, a lot of NPC factions, and no limit on OFs for each. Activity requirements used to get lighter over the years to accomodate to that, but the single-OF-per-NPC limit wasn't reintroduced (used to be a thing when I joined, then got removed sometime in the early 2010s). It could help reduce playerbase spreading, but also limit player freedom.
Now, good luck figuring out what you want OFs to be and to do, how many per NPC faction, how you plan to measure and review that, and what you want to give them in return.