Maybe it's me, but I don't see your rationale at all. Your guild was on a karma-based loot system, but your raiders weren't spending their karma points, so you changed the loot system to benefit the officers and GM of the guild. How does that encourage your raiders to upgrade their gear again? From what I'm reading, it looks more like the officers and GM wanted an excuse to reward themselves for raiding, while putting the raiders, even the hardcore non-officers, at the bottom of the totem pole.
Of course, we're missing information. Are people promoted to officer because they raid heavily, are prepared and are dedicated to the guild's raids? Are all people who fit that description made officers, or are they still in the Senior Raider category? Do people who aren't as dedicated to raiding make it as Senior Raiders just because they've been in the guild for a long time, or do you have a requirement for attendance and performance in order to be promoted? The tiers themselves, the way I see it, are not well laid out. It's top-heavy. But that's just my preference- I'd have Members, Raiders, Core, Officer, and GM. Only Officers could be Class Leaders or Raid Leaders. That way, you streamline the hierarchy and also make it more friendly to people who raid, without so much emphasis on leadership. For example, when you have 20 leaders and only 10 raiders, that's too top heavy. When you have a filter-down chain of command, it's inefficient. However, like I said I don't know much of your guild's hierarchy and policies, so I'm going on speculation.
Finally, you're focusing on the wrong part of the problem, IMO. Instead of finding ways to encourage your subordinates to spend their karma points, you develop a new system that discourages attendance and participation for anyone below officer. From what I've seen, awarding points for attendance, for prompt arrival at the appointed raid times, for downing bosses, for staying the whole raid, etc., are good motivators to get raiders to attend, be prompt and try to run the whole raid. Telling the Senior Raiders that they get 20 extra points, while the GM gets 50, will not encourage them to attend, much less spend the points they have. If you want to get them to spend, there are alternatives. Have a mandatory spending minimum on items that are a significant upgrade. If it's a minor upgrade, they don't need to roll on it. If it's major, they roll or get replaced by a member who is probably waiting for an opening. Another option is point decay systems- where, after a raid, if you don't spend your points, you lose a percentage of those points every time. A third option is point-capping and a system of diminishing points. Once you hit a point cap, you start getting less points when they're awarded- until, after x diminishing returns, you get zero points, while a raider with less points keeps earning full points. It discourages point hording.
There are many options for changing the system if it doesn't work. The one you've chosen seems the most flawed- rewarding people not by their effort, but by their rank.
And one small point, your title has no psychoanalysis of QQers, unless we analyse your OP.
