Here is how the reputation system works, it has been modified to stop over rep's.

Default Reputation
What reputation level shall new users receive upon registration? Make sure that you have a reputation level that is at least equal to or less than this value.
10

Number of Reputation Ratings to Display
Controls how many ratings to display in the user's control panel.
10

Register Date Factor
For every X number of days, users gain 1 point of reputation-altering power.
365

Post Count Factor
For every X number of posts, users gain 1 point of reputation-altering power.
500

Reputation Point Factor
For every X points of reputation, users gain 1 point of reputation-altering power.
1000

Minimum Post Count
How many posts must a user have before his reputation hits count on others?
10 posts

Minimum Reputation Count
How much reputation must a user have before his reputation hits count on others?
100

Daily Reputation Clicks Limit
How many reputation clicks can a user give over each 24 hour period? Administrators are exempt from this limit.
3

Reputation User Spread
How many different users must you give reputation to before you can hit the same person again?
30
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