Degeneracy exposure controlled by the three tiers of laws explained:
A country is founded with a king who is the head of the government and a family of royals, within it someone buys up some of the lands within the country to build his community in, this makes him a noble, and his family nobility, he invites certain people to move in and purchase properties within his lands and build their homes or businesses upon them, which makes them his commoners, and their families common, then outsider enter one of the territories claimed by a commoner on their invitation.
The royalty owns all the land within it's borders, thus their laws apply all throughout the country.
The noble is the second owner of the plots of land within his holdings, thus his laws apply within these territories, his laws may not contradict those of the first owner.
The commoner is the third owner of their specific share of the land within the community, thus their laws apply within the bounds of this property, again, their laws may not go against those imposed by the tiers above them.
All three tiers of the law are enforced by the government.
We already have this system in place, those who enter into the apartments of others must obey the laws of the government, the laws of the landlord, and the laws of the tenants, all three are enforced by the same police.
The same is true of homes or businesses built on land that has a private owner between the owners of the specific home or business, you first obey the laws of the country, then the laws of the one who owns the land that the property is built upon, and then the owner of that specific property.
Of course, there is the status quo of federal laws, state laws, municipal Laws, possibly the community laws, and then the laws set by the property owners.
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