Points can determine what you can and can't do in the server world, the lower points a player has the less trustworthy of abiding by the rules they are.
Points can be deducted for minor rule violations, if you see a player with less than 5 points it means they have at some point broken rules on the server but have not been banned.
A player with more than 5 points can be deemed quite trustworthy. A player with 6 points has normally played on the server for quite some time and a player with more than 6 points has carried out some good deeds for the entire community (such as helping new players, hosting community events, plus more)
Points are granted to players by the staff as they see fit.