It never resets. So its utterly meaningless when we're trying to catch the charismatic people with 7000 points.
The point system should encourage participation. If we reset the point system every quarter (3 months) or every YC funding cycle, and then give permanent awards to the leaders, then all of us, leaders or laggards, have more reason to participate positively.
Or, instead of awards, we can tack permanent bonus points onto each user. #1 place gets +20 bonus points. Starts the next season with an automatic advantage (like racee qualifiers).
nickb (100+53) 100 is permanant.. 53 is current quarter.. total 153
Keep things fresh.
The problem is not as urgent as you might think, though. In a site that's growing, you get a de facto karma decay, because a top submission gets more points than it would have 6 months ago.