What you really want is proportional representation. This way you can just vote for exactly the party you want, and get exactly the representation amount proportional to the amount of people who voted for said party.
Some folding of the votes for parties too small to hold office could be reasonable, but I think a huge problem is any system that basically makes it impossible for anything other than 2 major parties to exist at a real player level.
Preferential voting is absolutely not the way.
What you really want is proportional representation. This way you can just vote for exactly the party you want, and get exactly the representation amount proportional to the amount of people who voted for said party.
Some folding of the votes for parties too small to hold office could be reasonable, but I think a huge problem is any system that basically makes it impossible for anything other than 2 major parties to exist at a real player level.