I think I understand the thought behind this, give users a reason to be helpful and gives them a reputation of sorts as a "good" user. However this would cause user to dislike certain users. Like the users who are consistently reporting threads that violate the rules, many may start to think they are a** kisses. I report when I feel the thread needs to be reported, for the good of the site. The mods know who report often and who reports well. To be honest they probably have a list going in the Mod section. If users don't want to report then we don't need to bribe them into reporting, with the amount of users I am pretty sure nothing slips through for very long.
In the end I would just see this as another competition. Or something to brag over. However I do think that maybe users that want to join and have high quality post and reports on the site, could be offered a new group of sorts, similar to Elite Members but with much higher standards. Although this is not needed and will warrant bragging and hatred among the site.
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