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I can think of one scenario where it does something and it's if you're a trader. Getting some "+rep Good Trader" comments might help people be more "trusting" with trading with you.
Though, even in that scenario, it doesn't really mean much, does it? Oh well. I guess it just makes people feel better when they get commended on their profile with a +rep comment.
high rep was an unofficial way to see if someone was a good trader or not, used before sites like Steamrep took off. But its mostly used to this day by scammers having fake rep to not look shady.
+Rep and apples for awoos.
https://www.youtube.com/watch?v=DrZGbEbiuIE
The origin of it is vbulletin forum. Back then there is no steam forum and companies purchased vbulletin forum for their customers.
When you like a post, you can click the reputation icon and give the user 1 reputation point and state a reason. The user can log in and have a view list of all the reputation earned and lost with a reason. This is to encourage the community to chat proper and civil. Your profile will display your reputation points.
The same concept, facebook introduced +like and the result is a billion dollar business with many customers.
However, over time the reputation system is easily abused or unfair. Imagine logging into steam forum and a 10 year veterian had 5000 points while you only had 1. It's difficult to close the gap and honor the system. vbulletin no longer sells but the habit of giving +rep continued within the community.
Some guy commented -rep toxic under that screenshot, i asked what -rep means
He (or she) just said that it doesn't really mean anything