My impression is that neither *cyberocracy* or *cybercracy* is really well-formed in the context of classical languages, so you can just pick whichever one you feel sounds best or that you think is better formed according to English analogy. According to the Oxford English Dictionary, the modern English prefix *cyber-* was formed by detaching the first two syllables of *cybernetic(s),* from Ancient Greek *κυβερνητικός* (*kubernetikos*) which comes from the verb *κυβερνάω* (*kubernao*) (this is related to the English verb *govern*). So I don't think there is really any "etymologically" correct way to use *cyber-* as a prefix any more than there is an etymologically correct way to use *-holic* as a suffix. If we set aside etymology and just look at modern English analogy, there seem to be two competing tendencies: *cyber-* is used as a prefix in a lot of words, and *cybero-* is not; but *-cracy* is preceded by *-o-* in a lot of words, and is not directly preceded by *r* in any well-established word. (Urban Dictionary does record two innovative formations that end in *-rcracy*: *[hypercracy][1]* and *[twittercracy][2].*) I think I prefer the sound of *cyberocracy* a bit because its stress pattern seems more natural to me: the first syllable of "cyber" is stressed, as in many other words, and the third-to-last syllable of "ocracy" is stressed, as in many other words. With *cybercracy,* we have to put a single stress either on the first syllable, which is earlier than words ending in *-cracy* are usually stressed, or on the second syllable, which would cause "cyber" to have an unusual stress pattern compared to other words starting with this prefix. Other alternative formations are possible. If you search Google for "cybernetocracy", you can find a few hits, and "[cybernocracy][3]" is common enough to have made it into the Oxford Dictionaries. [1]: https://www.urbandictionary.com/define.php?term=hypercracy [2]: https://www.onelook.com/?w=twittercracy [3]: https://en.oxforddictionaries.com/definition/cybernocracy