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I would argue that any majoritarian electoral system (winner-takes-all), including ranked choice, incentivizes large parties. There is some nuance between them, but I don’t think that ranked choice can fundamentally solve that issue. Sure, you can enter a protest vote, but will it really change anything? I think that parties need realistic changes at gaining (some) power in order to be viable in the long term.
This “new law” was passed more than a year ago… But, it’s still a step in the right direction.