I was checking some other social news sites and ran into
www.italknews.com. In their FAQ they break down how their "iPoints" or Karma works. Here it is:
Q: How can I get points on iTalkNews?
Here is how the points work:
Getting Published: 3 points + # of recommends
Published Link: 2 points + # of recommends
Editing Accepted by Original Author: 5 points
...and promotion:
Q: What is an "iPoint"?
An "iPoint" is a number that is used to index your article. This system allows us to see what stories should be placed on the front page, and it what order they will appear, based on a series of four (4) factors.
The number of page views your article has received
The number of recommendations (or thumbs-up) your story has received
The number of discommendations (or thumbs-down) your story has received
The amount of minutes since your initial post, the newer the post, the more iPoints it will receive.
This might be a good guide when considering improving Pligg.