I would suggest we make a difference between the three catogories of people who will somehow submit themselves to the legal system of the Gay State:
"Citizens",
"Affiliates" and
"Permanent Residents".
Permanent Residents would be those who legally live on the territory controlled by the Gay State, independently of them being Gay or straight. These persons, being non-citizens, should have no rights with regard to the higher political institutions of the State (e.g. election rights for the parliament, government or courts of justice). In my view, however, they should be permitted to participate in communal politics, e.g. have the right to participate in elections to the city council or at least to form a "non-citizen board" which should have some competencies within the city council.
Affiliation might be an option offered to Gays in Diaspora -- they would instantly become subjects to the Gay State, previous to the more difficult and demanding process of becoming a full citizen. Affiliates could have their elected local boards, which in cooperation with officials of the Gay State will take care of Gay politics in diasporic communities (and
only there). These communal boards might even wish to create some informal networks in "opposition" to the State, but these networks should best remain informal, as far as the Gay State is concerned.
Citizenship involves much more than a permanent residency or affiliation status. Every Gay should be entitled to become an affiliate or a permanent resident, even some straights would perfectly fit into the gay society as residents. But being a citizen implies that a person by free pieces is assuming the obligation to serve the state and, in case of necessity, to defend this state and its dependants. The more in duties first makes the person than eligible to the more in political rights. In my perception, the citizenship in the Gay State would be slightly different from the citizenship status in any "conventional" country. In any "conventional" state people are born into the citizenship "involuntarily" (and indeed, rather arbitrarily), such classical citizenship embraces all kinds of persons, independently from their willingness and readiness to affiliate with this state. I would propose that the Gay State establishes being Gay though as a necessary, but not a sufficient requirement. To become citizen, the affiliate of the Gay State should fullfill some additional criterions, e.g. learn some history and pollitics of Gay people, and substantially contribute to the further developement of the Gay State (military/civil service etc.).
I disagree slightly with Mogul on the matter of potential straight citizenship. I see no reason why such a thing cannot be earned. If a straight person is willing to assimilate into Gay culture there is no pressing reason to deny that person the benefits of being a full member of society.
Basically, my opposition to granting citizenship to straight individuals is founding in the fear that it would incite more unrest among straight residents than it would calm. As long as it is crystall clear for any straight permanent resident that he/she is not eligible for the [Gay] citizenship in principle, there is little cause for discord - straight is straight, and Gay is Gay. The very moment the first straight person will be permitted to "qualify" himself for the citizenship, there will be an uproar among the straight-born children of Gays, who would with full reason question why some straight people are apparently regarded more equal than others. The discussion in the society will then predictably lead to the eradication of every discrimination against straight people in the regulations for obtaining the citizenship, since all the parents would naturally wish their non-gay kids become citizens, too -- independently from their sexual orientation. And voila, in a couple of generations we will have the kind of a state which will mostly care about those who are "native" to its territory. We simply can't afford equal rights with regard on obtaining the citizenship status -- if at all, I solely can imagine that a straight person may be granted citizenship
honoris causa, in a somewhat unusual step of acknowledgement for his/her exceptional merits. What kind of regulations do you have in mind, Feral?
The word 'homocracy' is one way of encapsulating what we propose, yes. I generally think of it in terms of 'self-governance' though.
Homocracy is, of course, the tongue-in-cheek way to describe the political ambition of the State in question. There are good ideological reasons why "Socialist Republic of Vietnam" choose to include "socialist" in its name, and why the "Islamic Republic of Iran" included "islamic" in its. But of course, "Dictatorship of the proletariat", "Rule of God" and "Gay self-rule" do say very little about the actual (technical) regulations within the State apparatus. Gay separatists already have given birth to a variety of Gay entities ranging from a "two-king constitutional monarchy", to a "parallel republic", thus we of course shall consider what kind of known government systems might serve us best. Whatever the name, there are a number of principles which seem to be very promising for good governance, a few to mention:
- Separation of powers: legislative, executive and judicative shall be separated;
- Checks and Ballances: mutual control of the powers;
- Meritocracy: where necessary, special qualifications shall be required;
- Majority rule: democratic structures among peers;
- Accountability: the Government shall be kept accountable for its actions;
- Subsidiarity: the superior authority shall not try to regulate issues which can be regulated by a subordinate authority or a citizen as well;
Now depending on the personal strength of the entity, and the tasks it is expected to fulfill, the governing structures can be more or less complicated. It is essential that a) every public official (from little immigration clerk to the president) can be removed in case of bad management, and b) there are instruments ensuring such incidents remain a rare necessity. An interesting solution is a "nobility republic", though I do not know whether this term would serve us well -- who shall determine the "nobility", after all? Probably the expression
"qualified citizenship" might serve us better -- in the meaning, that one must first earn the citizenship of the Gay State, as Feral proposes.
How to does one "demonstrate" that they are gay? I suppose that could lead to some rather interesting imagery, however I imagine there are ways to decide based on other factors so not just anyone can claim gay to reap the rewards.
No, the immigration clerks will be not required to test the gayness of an applican first!

The written declaration shall suffice, plus all the necessary additional steps aiming to increase political maturity of a would-be citizen, plus the necessary military/civil cervice. The practical duties wouldl make any "acting" by a straight person highly unprobable, and in case of a fraud the citizenship still may be revoked.