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The Vampire Rave Status System is primarily for measuring how long a member has been registered with Vampire Rave and how active that member has been during their membership. Some site privileges are based on your status level. The list of powers associated with each level constantly changes. You can always find the most recent table here:
Additionally, the higher your status the more weight your ratings will carry throughout the site. The power of your ratings is directly proportional to your level. As an example, a level 10 rating is worth 10 times the rating of a level 1 member.