The way its done in Asgard is that if you get an upgrade to a dropable item won via DKP, you should (and this usually happens) give the old item to someone who can use it or to the guild bank.
The difference here is that if somebody leaves Asgard while wearing dropable DKP won loot, it's never, ever, asked to be returned.
This thread is riddled with bad examples, so for some reason we are talking about upgrades while still in guild.
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