Karma points are points earned for doing various good things on the site. Now "good" is pretty subjective: in this case, read "good" as "anything that makes the site more interesting and fun to be on". Feel free to suggest things that qualify.
OOC Karma Points are attached to your account, free for use for any character, while IC Karma Points are attached to the character who earned them (posting in a roleplay thread goes to the character or characters involved in the post).
Herds have their own karma point count, which can be used for prizes for the entire herd.

Out of Character 2 KP for posting in a roleplaying thread. You have to be roleplaying. Don't just flood for KP. 2 KP for affiliating your site with ours. 2 KP for bumping the advertisement threads 3 KP for joining as a stallion or as a rare breed 3 KP for joining as an adoptable. (this does stack with the 3 KP for joining as a stallion/rare breed) 3 KP for recruiting a member Various KP will be distributed for doing "good things," such as displaying something in-line with your character's culture, creating or completing or participating in a mini or full-sized plotline, or being just really awesome. Various KP will be distributed during contests Various KP will be taken away for a very out-of-cultural reaction or thought without a satisfying justification. In Character 4 KP for doing your character's job (weather-watchers watching the weather, entertainers entertaining, warriors WINNING a fight, etc) 5 KP for participating in a duel 5 KP for joining a herd 5 KP for having a foal (both parents get this, both parents must be PCs. Does not double for twins.) 6 KP for finding a mate (no NPC mates :P) 6 KP for participating in an informal fight 8 KP for forming/inheriting/winning a herd Various KP for doing stuff we think is cool.

Herds
25 KP For founding a herd
4 KP For holding a celebration
5 KP For each member than joins (player characters only; does not stack with the founding points)
5 KP For any member having a foal (Only once per foal, could be either parent, both parents are player characters)
6 KP For getting a new leader
6 KP For any member in the herd dueling/fighting
6 KP For any member of your herd finding a mate (player character only, doesn't have to be in herd)