That wall of text didn't answer the OP's question.
I was always under the assumption one has to be a stonecutter to be moderator.

Of course it did. Here's a smaller quote to make it easier for you:
Administrator: Has all available permissions and can appoint moderators and perform other administrative tasks
So, one becomes a Moderator by being appointed by an Administrator.
The rest of the "wall of text" was correcting the assumptions made here:
You can accumulate rep points, some one with allot of Coins have allot of rep points. Eg. Me and you both have 1 coin because were newbies. Also people need to know you or at least of you and like you.