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One of the things I like about Hubski is that "points" only go up to like seven. After a certain point, you're as cool as you're gonna get. I argued for leveling Karma on Reddit a good two years ago; nowadays of course you can earn 1000 karma from a pun thread, whereas two years ago 1500 karma was the most you'd see for a guy who saved an orphan from the streets.
I think there's a danger in making it too much like "goods and services" but I think that allowing people to redeem their hard work for "valuable cash prizes" is a good motivator. Perhaps it's a semantics problem: "karma" is, from a Buddhist perspective, a BAD thing. Perhaps "trust" is a better word. Then the question becomes "how does one earn trust?" I'm sure I'll regret all of this when I sober up.