If I understand the question, good luck, because
The Palladium Combat System Is Similar
In Rifts and other games using Palladium Books' system, characters have what the game calls attacks per melee but are, in reality, actions per melee round, which vary--depending on character options and level--between 2 and in the low hundreds, depending on how thoroughly the system's been abused.
When combat begins, initiative is rolled on 1d20. The character with the highest initiative result takes his action, then the next highest takes his, and so on until every participant's taken 1 action and then the process begins again, from highest to lowest, for those who still have actions, until no characters have actions remaining. When a character's exhausted his actions, he can take no more. If other characters can still take actions while one or more characters can't, the other characters continue to take them in initiative order. While this system can leave one especially active character with a big pile of actions at the end of the melee round, it usually doesn't (see below). When all participants have taken all their actions, initiative is rolled again and the next round begins.
When a character takes an action the action's target can respond to that action by borrowing against his future actions to do so. Others can also respond at the GM's discretion, and whether the borrowed future action is the borrower's next action or the borrower's concluding action is the subject of heated debate.
The character who initiated the action will always take his action, but the target's action may change his result. If the target successfully dodges, the target won't be hit, for example. The list of responses the target can make is limited (usually only a dodge or parry), but contrary to many systems, the borrowed action can be an actual--if simultaneous--attack. Thus two characters can trade gunfire when the acting character shoots at a foe who has a readied gun. This often leads to one-sided slugfests involving terrific collateral damage, cratered wastelands, and destroyed million-credit mecha.
Under most interpretations of the rules, a character can borrow from his future actions until he exhausts his actions this round and then continue borrowing future actions from the next and successive rounds. This can lead to cases where a single character has borrowed so many future actions that he can't do anything but respond to others' actions for, like, a month.
Does It Work?
If the system were more precise and scaled appropriately, it'd be workable if confusing and time-consuming. It's very nearly indefensible as written, however, as its ambiguity necessitates a vast amount of GM adjudication (moving during combat, for example, goes nearly unmentioned).
Were a hard, static number of actions per round given to characters and these became more numerous as the characters gained experience, and a definitive action list were created to quantify the proceedings, the combat system's spine could remain intact. High-level characters would steamroll low-level foes, dodging their attacks and filling them full of lead when the low-level dudes were foolish enough to take arms against them. There's a solid combat system in there, but there's a lot of work until it's realized.