I really like the concept of splitting players into multiple groups based on whether they want to help or harm NPCs, with varying benefits depending on what the majority picked/which side performs best. I could certainly see us using this concept somewhere along the line, whether it's events, mini-games, or a way similar to what you suggested. Neat idea.
Interesting idea but personnaly I consider the piglins as a culture and a civilisation of it’s own, not just some random mobs you can feed money. But I like the idea of having some kind of economical trading in between groups and town.
I actually love the spirit behind the idea. Supporting NPC factions through donations/objectives in hopes the side you helped wins out is a mechanic I’d love to get into