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