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Imagine an MMORPG of a massive city.. and the Rogue’s guild is entirely run by players. Where the city has an entire political system that is populated by players who were elected by the playerbase.
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Knowing how people are on the internet and in MMOs I think it would be a nightmare. In theory his ideas are good but in practice they would be ruined by the very players he wants to run MMOs.
It also sounds like he's trying to justify spending less money on development. Just let the players create content right? STO does it and I think Neverwinter. I don't like it myself. I rarely do foundry missions.