I have yet to fully delve into a deep analysis of the mechanics of how it should work, in the context of a forum like this. I do know one thing though, the straight up cut-off rules in this system are wrong. Sure, negative rep (ie below 25) should not have an effect, but a lower reputation should have a proportional effect to the relative reputation score of a higher one, not absolutely none. And you know, the formula ups and downs rep in accordance with steem power. That is a clear case of vesting the power of censorship in the ninja mined accounts.