Read it - and without doubt I can understand why you do like it. It is broken and pushes no punishment on murderers, griefers, pirates, or whatever else you might want to call yourself. I posted my reply in that thread, and I'll post my reply here:
Right off the bat, there is a massive loop hole with your reputation system with players gifting players reputation.
There is nothing stopping, if implemented, murderers with multiple accounts to log in, gift reputation to their main accounts to each other, and then achieve a higher reputation to enter these instances in High or Medium security space to kill players. Because of this Loop Hole in Step One, step Two and Three fall apart.
There is no suitable Punishment system in place besides killing anything cheaper than an Adder (which would only leave 2 other ships, the Sidewinder and Eagle) because of the 100,000 credit cap. And even then, a 100,000 credit fine may be everything to newbies murdering newbies, but it is nothing to veteran griefers or pirates or war zone clans.
Aside from this, the only protection any victim could hope for is a high reputation in high security space - but this is also flawed if the person is new to the game and knows no one to receive reputation from in the first place.
As your reputation idea stands, everyone starts off as "Default" - this sounds great, but it provides no instant benefit for PvE players or protection. Simple fix; we let everyone start off much higher - but then that doesn't solve the initial problem - the same problem would occur if people all started off as Upstanding or Honourable, as a patch would not discriminate who is a murderer - so every murderer would also begin this way and would be given a free pass at killing or increasing their reputation even higher with spare accounts - so it would only end up hurting people more than fixing it if they started higher than default.
Also, new players would be, potentially, unaware of this system to begin with.
To a player scared of PvP as it is, but which this tries to rectify, a mere 30% bonus would not be enticing enough to risk a T9 insurance cost - they would merrily stick to Private or Solo.
Power Play - picking a faction will, essentially, render the whole reputation pointless for those wishing to pick an allegiance to take part in the PvE aspect of the background sim. This would turn people away from Power Play, when PP itself is already bent out of shape.
Wanted status - because there is no suitable Punishment system, then accidentally shooting someone or killing someone instantly treats the PvE pilot as Open Season.
War Zones - don't have a problem with this, as it is also similar in my thread. Want war? Expect to encounter players and kill or die - very simple, war isn't pretty.
I'm repping you +1 for effort and a constructive idea - but it is heavily flawed when players (accounts) have free reign on which player (account) to rep when many Elite players purchase a second account - or many more.
