My answers are in bold.
1.)Does something happen to accounts on your server that are very inactive? If so, What?
Staff are demoted.
2.)Are there rewards for players who return items stolen by griefers to their rightful owners?
Possibly, depending on item value. But it's a thing that should be done anyways.
3.)What happens to someone who keeps spamming 3 times after warning?
Temp Mute or Kick.
4.)Is PvP allowed outside of spawn and settlements?
Yes.
That's all I have for right now, please answer![b]