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You assume that karma encourages good behavior. If that were the case, then I think this would be a good idea.

I couldn't agree more. Karma encourages karma getting behavior. Sometimes that overlaps with good.

Agreed. Karma might not be the best system for encouraging good behavior... But does anyone have any other ideas?

It's also slightly more difficult because what constitutes good behavior isn't always black and white and isn't even always agreed upon.