Karma, which can be viewed from the command window, is an indication of relations between your faction and others. It serves as nothing more than a measure and the faction founder can choose what to do with the information as they please. The only exception to this are NPC factions, which may declare war as soon as the karma begins to drop in the negative direction, preempting an attack.
You can forge alliances with any faction you have positive karma with in TextSpaced allowing you to pass through their planetary shields, receive wormhole toll discounts and not be affected by system rules. A founder can declare war with a faction you have negative karma with (assuming you don't have an alliance). Changes to karma happen naturally by such things as support in battle, completing missions for a faction, disobeying system rules, hostility or general good relations. Providing your karma with another faction is positive the founder can solidify the alliance within the command window. Conversely, the founder can declare war on another faction providing they are not already allied, this means all faction structures will attack the faction on sight as well as banning those players from your systems (blocking them from using services).
The most common time karma will change is if captains from one faction break the systems rules set forth by another faction, such as mining being disallowed.
Karma shown in the karma log can take several hours to apply to actual relations, providing leeway to all parties involved. Additionally, some actions are always attributed to the faction founder if no individual can be held directly responsible.
Within a faction ranks can be set, these being Ensign, Commander, Captain and Admiral. Players that are born at a colony will automatically start the game at the rank of Ensign. These roles enforce certain actions the player can and cannot do, which are listed below.
Ensign
Commander
Captain
Admiral
Founder
All