A federation within a confederation

First off, I initially thought of this imagining some hybrid between a Three Seas Initiative and the Intermarium, for the FH forum. But as a general concept, I figure its better positioned in before 1900, particularly since one of the better examples of a Confederation turning into a Federation is the US replacing the Articles of Confederation with the Constitution.

So, how could this work: a confederation of states is formed, with a closer knit federation of some of those states within it?

A few ideas:
- Separate confederal and federal governments, and all members have representation in the first, but only the full members have membership in the second.
- A unified government for both the federal and confederal members, but in exchange for the greater autonomy of not being in the federation, those outside only get partial representation (if we use the US as an example, maybe only 0-1 Senators).
- A unified government, but with a chamber of the legislature that only represents federal members.

Any other ideas? How well would you see this working?
 
Wasn't there a TL about this a while back? I can't remember what it was called, but both the Federation and Confederation had their own presidents.

EDIT: I think it's this:

 
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This is a little similar to an idea I've had (which has been thoroughly derided by the Indian, Pakistani, and one Nepali :p members here) for a "reformed Raj" leading to an independent, united Indian Dominion/Commonwealth... patterned a bit after the old German Empire constitution - except that with 12 or 13 very large provinces and c. 565 principalities, it would of necessity be a bit more complex. So perhaps a "tiered" system, with the larger Princely States having representation similar to the Provinces, and the smaller states grouped together into federations (maybe based on the old Agencies) to obtain a size appropriate for representation on a par with the Provinces and larger states... insane, I know, but hey, partition was awful....
 
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