Reputation is done outside of blockchain consensus and can change / be tweaked at any time. It is a steemit.com feature, not a blockchain feature.
Maybe if steemit.com comes up with a good enough reputation system that doesn't get gamed we could tie it into rewards, but that is a long way from happening.
Well thank you for taking the time to reply here @dantheman Your great! I like the idea of the reputation system, since obviously it will auto-moderate the actions of the community knowing their bad acting could result in a downgrade, everyone will start thinking twice about what they do!