When you reset a game you will get Karma and Paragon.
Karma: Karma is gained when you reset with more than 35 kittens. Karma gives +10% happiness for having it, and 1% happiness for each
point as well. This does have a diminishing effect to keep it from
becoming too over powering. The exact numbers on the diminishing
effect are currently unknown.
- 40 kittens -> 1.00 Karma
- 50 kittens -> 2.00 Karma
- 62 kittens -> 3.16 karma
- 67 kittens -> 4.13 karma
- 73 kittens -> 5.07 karma
- 80 kittens -> 6.00 karma
- 89 kittens -> 7.02 karma
- 99 kittens -> 8.05 karma
- 110 kittens -> 9.00 karma
- 123 kittens -> 10.03 karma
- 137 kittens ->11.05 karma
- 152 kittens ->12.05 karma
Paragon: Paragon is received for resetting at over 70 kittens.
Every paragon point will give
- 1% global production bonus
- 0.1% storage capacity
Why would you reset?
The reason a person would reset a game is to earn everything faster. Yes you have to start over again, but with all the extra happines, the production bonus and the extra storage capacity everything will go faster.
Also for getting some achievements it is neccesary to reset the game.
Reset or Wipe?
There is a difference between resetting and wiping. When you wipe the game you will destroy all your progress. You won't get any Paragon or Karma points when you do this.
If you reset you do get Paragon points and Karma and you won't lose all your game progress.
NOTE: It'll take some time before you are back at where you are now if you reset the game, don't assume it'll go much more faster.
There is also an achievement
Lotus Eater Machine - Break the cycle of reincarnations - Obtain karma by resetting game
Source
Achievement
Paragon
Karma
There is a difference in buildings that produce resources (or positively influence resource income) and buildings that reduces the consumption.
In the first case, build whatever you want. They will always add up to your total income. These buildings are for example catnip fields, aquaducts and temples (culture). Every catnip field you build extra will produce another 0.125 catnip per tick, excluding all bonuses. The same goes for the mine. Each mine will increase the mineral output by 20%. Note that this 20% is summed over, not multiplied. So 10 mines increase output by 200%, not 1.2^10 = 619%.
The second part is a bit more tricky. You already noticed that 25 tradeposts should result in a stop of consumption of the luxury goods (because 25 * -4% = -100%). That is indeed not the case. There is a diminishing function, explained here, which will make sure that the reduction never reaches 100%. However, the diminishing does only start after 75%. So building 18 tradeposts (=72% reduction) gives the expected reduction, but 19 tradeposts will give around 75.8% something. Each tradepost you will build after this 19th one will increase the reduction by a smaller amount, as seen in the previously mentioned answer. Pastures (both normal and unicorns) are good examples (and tradeposts of course) of buildings who have this diminishing effect. An example of a diminished effect is the auto-observe chance for observatories.
This diminishing function is the same for every building and effect. So every building and effect increases linearly untill 75%, and after that it's slope will decrease (as shown in the figure in the linked answer).
Best Answer
In the source code we can see that karma accumulates over resets. Meaning, you retain your original karma and gain additional karma on top.