@Rumble Man: You can only call me a girl in character :P
Basically karma points prevent users from just flagging people for no reason. You get enough of em and you cant flag posts anymore, get even more and eventually you cant post. When you flag a comment someone is automatically getting a karma point. The Mods look at the flagged content, and if its against the rules they moderate it and the flagged poster gets the karma point, but if they look and see that a post was flagged for no reason or it wasnt against the rules, the flagger gets the point.