Only the hybrid class xp penalties will go away, not racial ones.
There is going to be a progression server (Blue) launched sometime after Velious launches. They are calling in the P99 Recycle server because it will launch as a progression server running on the original timeline of Classic, Kunark and then Velious. So it will take around 3 ish years to get there I believe...then when it's done (I assume the timeline to when Luclin launched) it will be reset and start over with all the characters being copied over to the existing Blue server.
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