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This is the second time that I've hit this cap:

Given that out of my 697 flags, I've only had 15 declined, I feel that I'm trustworthy.

Instead, I can't flag crap until tomorrow.

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40 flags... whoa there, caped crusader. Can it not wait till tomorrow? – Asad Saeeduddin Apr 24 '13 at 10:42
Your limit will go up if you continue with good flags and avoid making bad flags. It can go up to a maximum of 100. – Ren Apr 24 '13 at 10:45
@DannyBeckett see this answer. It explains the flagging system quite nicely. Also, see the bottom of this page. – Ren Apr 24 '13 at 10:49
I see that you are a 2.6k user on SO. I suspect that most of the time you are flagging for questions to be closed. Those flags are automatically handled by the system when the questions are eventually closed by >3k users, and they usually serve the purpose of training future closers. You have enough training, and you can focus on flagging things that do need moderator attention, like spams, which do not happen as often. – Antony Apr 24 '13 at 11:01
Thanks for your take on this @Antony – Danny Beckett Apr 24 '13 at 11:05
up vote 3 down vote accepted

As you prove yourself to be a good flagger by making good flags, your flag limit will increase. Getting one declined flag tends to decrease the number of flags that you can make by 1 however.

For more information on flagging, see this answer by Marc Gravell. It is slightly outdated however. Also, see the How many flags do I have? section on this page that explains the flagging privilege. Basically, it states that you get one bonus flag per 2000 reputation and that you are awarded bonus flags when you flag correctly.

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In addition to what has been said about your flag limit being flexible: if you are piling up flags that quickly, there is a good chance the limiting factor in the workflow is no longer how fast you can find stuff to flag, but how fast the mods can deal with your flags.

I'm going to take a guess and say you're specifically focusing on flagging activities. Running into more than 40 items that need mod attention over the course of an average day seems unlikely. That is great; we need people to help discard the chaff, but once you've hit the limit, you might want to take some time to take part in other activities (answering, editing, reviewing etc.) That way, your productivity isn't wasted.

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I've been on the site for the last 14 hours or so... so although I have been answering etc, that's how I've clocked up 40 flags. – Danny Beckett Apr 24 '13 at 11:05
Exactly. Every flag that is raised needs to be dealt with by a moderator. If you could flag 1,000 times a day, so could everyone else. That could be 'quite a lot' of flags for the mods to have to deal with. – JonW Apr 24 '13 at 11:17

Well I do not feel it is good idea to remove such kind of limitations, the reason, Site is not only for single purpose. You should concentrate on other stuff like Editting, Answering, Reviewing.

If one has unlimited authority for one task then he/she will keep on doing it for long time which sometimes is not good.

Moreover as the Ran commented the maximum flags you can handled limit is 100, not a 40. Your flag count get increase as your flags get result as "helpful".

One important thing keep in mind that Flags taken very seriously.

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So by your own madness, just ignore stuff that needs flagging? Makes sense... </s> – Danny Beckett Apr 24 '13 at 10:46
There are other active community members that will deal with it most of the time. – Ren Apr 24 '13 at 10:47
@DannyBeckett,well there are other users like you who can see the same post which needs moderator attention. They can do the same job. – Lucifer Apr 24 '13 at 10:49

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