This could get messy quickly though, I could generate infinite karma by giving everyone who upvotes this 5 karma. We probably need a lot of rules.
As it stands, we should assume that nobody's trying to maliciously game karma. Sockpuppetry is already an option for that, so unless we start limiting upvotes somehow there's no reason to fix that problem.
I will bet 500 karma that a funny picture thread will appear on Less Wrong within one year. If anyone is interested in the bet, we can better define terms.
Right now the LW software doesn't support karma transfers. Until it does and we can develop a more robust prediction market, let's just record the karma transfers on the wiki page that already exists for this purpose.
I will also give 100 karma to anyone that donates $10 to the SIAI before the current fundraising campaign is over.
10,000 karma for the first person with a karma transfer source code patch?