This post is quite informative and should give you some idea as to how it works:
https://steemit.com/steemit/@arcange/what-is-steemit-reputation-and-how-does-it-work#@unclehermit/re-arcange-what-is-steemit-reputation-and-how-does-it-work-20180130t190553687z
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this definitely helped me get a better understanding - still not 100%, but moving in the right direction.
thank you for the share, @unclehermit!