A question about new Honor system.

Is honor going to decay if you get reported or you actually have to get punished?

Phreak in his video said if you get "reported" i think this can be abused pretty hard, by just randomly reporting people who dont deserve to get reported in order for someone to decay in honor. Or to keep people hostage or blackmail them for reports or honors. I hope he was wrong in his video. Anyone have legit answer?