IMHO it look like logo for infants. I thought after first look it is some seal.
This version?
http://i60.tinypic.com/jab4e8.pnglol, i guess it's all about perspective. I just thought karma could use a more playful appearance since the idea behind the coin is to do good. I didn't think the current logo conveyed that idea, and a generic letter 'K' would probably have felt too corporate and overdone at this point.
I actually really like this one, despite the fact that it is a bit too cartoony and feminine (no offense, girls). That and colors should be easily fixable. I like it because it looks really nice, has few enought details to be recognisable in small icon (many other suggestions fails in this case), I like how it breaks out boring circle a bit too. It could be tweaked to be a really nice logo.
This logo is awesome.
