See the 8* tourney thread for details, but here they are to summarize:
Method 1: Free for all “Battle Royale”. What this would entail is everyone battling everyone else in the tournament that they can hook up with in chat. At the end of the tournament period, the 4 people with the most wins, or maybe the best win/loss record will face off in direct elimination for the overall title.
Method 2: Players self-match for elimination style bracket. This would mean you play whoever you can find online and battle that person. The winner advances to the next round. And so on.
I personally like method 1. Makes for a lot more overall battling, but the better scores may or may not go simply to the most active player. If Player X is on all the time and battles and wins the majority of his bouts, he looks better than someone only able to find and battle 2 or 3 players, even if he wins all 3 battles. Method 2 would seem simpler, and maybe go best 2 out of 3 for each match?