Aloha,
Thanks for @DEWEY_96_ for tagging me. So our Karma system is basically a virtual pat on the back or slap to the wrist. A report=-1 in your karma. Not sure where two reports equals a drop, but that is not true. But the breakdown is below if you're curious. I use Compliments VERY often especially if I see someone actually helping in chat or someone that did especially well. Hopefully this clarifies the system for you a bit, if you have any other questions let me know.
Mahalo,
-Hapa
"Once a you've achieved a certain Karma level, your daily limit will also increase:
Karma Level
Limit on reports and compliments
0 - 19
7 reports and 7 compliments
20 - 49
8 reports and 8 compliments
50 - 79
9 reports and 9 compliments
80 - 109
10 reports and 10 compliments
> 110
11 reports and 11 compliments
On the update’s release, a limit of reports and compliments will assign to players depending on their Karma level."