Quick answer
A righteous life keeps blessing people after it ends; its memory becomes a benediction. A wicked name decomposes.
Read both lines
"Memory" and "name" are what remain of a person when the person is gone, and the proverb watches what time does to each. The memory of the righteous is blessed: people speak the name warmly, tell its stories, name children after it. The second line chooses a deliberately physical verb: the name of the wicked rots, not "is forgotten," which would be mercy of a kind, but decays into something no one wants to handle. Time is not neutral toward reputations; it composts some and consecrates others, and the sorting runs along the line of righteousness, not fame.
From this side of the cross
God does not relate to you through your reputation, and the name that secures you is not the one you are building; it is the one you were given when He called you His child. Legacy is worth tending. It is not worth carrying as an identity.
Related: Proverbs 22:1 · Ecclesiastes 7:1
New King James Version®, Copyright © 1982, Thomas Nelson. All rights reserved. Full copyright information. Scripture provided by API.Bible.
Go Deeper
If this verse has been used to put weight on you that it was never carrying, ask about it directly.