Yea, I looked at it, it's the Lineage2 system. Exactly how it worked there, the math is a bit different but it's the same system. Believe me, there were plenty of red names running around murdering people still. Honor killings were a big deal, someone breaking neut and stabbing someone else to death usually meant something big unless they were a dedicated red already.
It's not a perfect system, but don't lose your shit just yet. It's entirely possible to fuck such a system up by getting the numbers wrong, but with the right balance of karma/regaining karma it leads to some interesting things.