This would give both a reason for people to stay in a village, would open up pvp possibilities and start a mini village ranking system, this is how it would work:
Kage 1 Spot, Sannin 3 spots, Jounin 3 Spots, Special Jounin 3 Spots, this would be the top 10 players in that village, being kage the top player , and the 3 SJ’s the 7-10 spots.
To obtain these ranks players would have to fight (obviously), lets say a Jounin fights a chuunin, if the chuunin wins then he becomes Jounin and the Jounin goes back to being chuunin (this ranked ladder would only be open to chuunin + player)
If a ranked player stays inactive for 2 days he automatically loses that rank, opening it to be taken by anyone
At the end of the week, the top 10 players would receive some kind of prizes
Also each rank would have a cosmetic that would make them stand out based on rank (like kage could have the kage equipments, Jounin some kind of special uniform, etc etc), and these would be lost if they lose their rank