I think one possibly sustainable thing we could do is regulate “official tags”. Now, I know this proposal will be met with scrutiny by many, but hear me out. We have a criminal amount of people abusing tags–and labeling them with things that barely apply to the story.
Example: tagging a story with 'princess’ not because a character in the story is of royal background, but because some exquisite lover of the female protagonist addresses her as such by way of nickname. I think that’s kinda ridiculous.
Maybe we could have some sort of system where the community can vote on new tags to add to be ‘officially’ approved. Furthermore, I believe Wattpad should take advantage of the colorful tags, and use them to symbolically represent how much or little the tag applies to the story.
Example: if a story contains 10-20% of a tagged element, the tag would be gray. If it contains 30% of the tagged element, it would be blue, or something. And so on. Then, the tags which most strongly apply to the story would be in more definite colors.
Right now, our tags just look like this, and as far as I’m aware, the colors don’t mean anything?
I also think that having a description (1-2 sentences) describing each tag will help immensely. (Maybe the description shows up if you hover over the tag or something.) That way someone can recognize whether or not the tag applies to the story with accuracy.