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You can give out more compliments and reports per day the higher your karma is. You start off with 7 of each, you get an extra one at 20 karma and max out at 110 with 11 compliments/reports a day. Other than that lots of reports for misbehaving in chat can result in a chat ban. Otherwise, no, it has no practical purpose other than make an imaginary number go bigger or smaller.
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