The problem that arises here is overhead-related. Someone would have to evaluate how much of it someone did. Perhaps it could be an administrators/moderators thing that the members could request, explain their reasonings, and then it would be applied. Otherwise, every level would have to been investigated individually.

Other than that, I like the idea. The formula is mathmatically solid. It is just that it might be difficult to apply in the real-world situation, if you know what I mean.