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Socialism isn't about removing rewards.
There is a great distinction between 'grades' and 'money'/'ownership of the means of production'. Grades are not necessary to exchange for shelter, food and warmth. Nor did giving them a mass grade in anyway place the means of acquiring those grades (production) into their hands.
[eta] My own personal opinion is that those things necessary to survival and basic human dignity should not be seen as 'rewards'. They are a starting point.
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