I know this post is old, but I haven't actually checked out your account before.
I think flagging should not be paid, but seen as a vigilante act. If it was paid by any system I can think of, it could easily cross the line into censorship. Those with the largest stakes don't flag for fear of losing profits. If we give them the chance many will flag political, scientific, and any other kind of post that doesn't fit their (or even the average) worldview.
If it is not paid only those who wish to make change for the sake of change, instead of profit, will be the ones on the front line.
I regard it as vandalism if not out right theft.
Have you noticed, now, that apparently I am the only "bad writer" left on Steemit, as every single Item I post is almost immediately downvoted by this person who thinks Julius Caesar stabbed himself to death 30+ times, and that Oswald acted alone? I am now getting about 20 downvotes A DAY from this clown, who has neglected all of his "duties" of downvoting "bad content" just to downvote me, only me, and now, never anyone else.