When you say that incorrectly reporting a post as low quality would cost you money, how do you picture that specifically. Would there be an upfront cost to report; which would be reimbursed for reports deemed correct?
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It could work like this:
Basically the idea is to incentivise honesty and for reporting. If you just went trigger happy reporting every post without double-checking, eventually your reports would count for nothing and you would lose the ability.
Specifics around how this could work haven't been determined and I think given the way Steemit is currently built it would require a remagination of the platform itself.
Steem Cleaners are similarly already doing this, except they don't have a system in place that depowers and makes it hard for people to make false reports. However, Steem Cleaners pay out rewards to people who make valid claims of comment spam, Steemit misuse and so on.
Does that make a little more sense? Sorry, explaning things in detail can sometimes be one of my shortcomings.
All good, mate. The penalty is where it gets tricky for me. This process or body raiding your wallet would be a huge rethink of the architecture of this place; as your wallet is otherwise sacrosanct; same with your voting power. There are things that steemit INC can't do; which is part of the charm of the place :)
If you wanted to penalise by downvoting pending payouts, then the reporter could have send reports from a second account from which they don't post. There are quite a few accounts out there with a rep of 25.
You can't up or downvote them, because they don't post or comment, they just vote.