EDIT (feel like an asshat for forgetting this!): Everybody give David a big round of applause for getting this done in virtually 24 hours.This seemed trivial to many of you. I get that. In the coming weeks you'll see why this overhaul of the karma system was needed. Step 2) of my little plan for ATARNotes.com will drop in the next 2 weeks and you'll see precisely why this was needed.
Now that it's fully implemented (barring one minor thing I'll address below), I'm going to go through and explain it fully!
Karma was converted to Respect by dividing through by 25. I contemplated a full reboot, but that seemed harsh to the people who put in tireless hours into helping this community and I felt it would be cold to deprive them of one of the only indicators signifying this.
Here's how it works.
1) You can now vote on any post to indicate whether you like it or not. Click the up arrow to 'like' it, and the down arrow to 'dislike' it. Each of these actions are worth 0.2 and -0.2 respect points respectively.
2) However, a post must receive a certain number of upvotes and downvotes to activate respect points. When a post hits +3 rating (e.g. upvotes minus downvotes = 3 or more) you get 0.6 respect, and then 0.2 respect for each upvote thereafter. Similarly if a post hits -3, you lose -0.6 respect and -0.2 respect for each downvote thereafter. This prevents, as some people have noted, somebody going and liking 10 of their friend's posts and getting them +2 respect. If we notice any suspicious activity e.g. someone having a lot of posts with just 3 upvotes, we'll investigate to see if people are trying to game the system with their friends. Be aware, our system logs IPs and users who have liked posts, even if that information doesn't appear to you. You will be caught, and banned.
3) The 'top 10 most respected' list is broken at the moment (the thing I was referring to up top) and will be fixed in the next 24-48 hours.
4) I'm willing to hear any feedback you guys have to make this system better. It will become much more important in the coming weeks, so we need to make it as good as possible.
Cheers

EDIT: Over the next day we'll be retroactively crediting people +5 respect for each notes upload to their name. And every new upload will garner the same respect credit