There needs to be risk AND reward, not just one. And they need to be relatively balanced because "griefing satisfaction" isn't rewarding enough to be worth the risk of losing exp, and thus encourages people to avoid PVP. But if you could loot coins + an item then it would be worth it.
And changing the mechanics won't save the server, assuming that means increasing the population. Since a server is dead if nobody plays. Improving the mechanics may help, but the only thing that will bring more people is advertising. The people who aren't playing on the server either don't know about it, or they have assumptions about PVP and Everquest or simply don't like it. You can't force people who don't like it to play, but you can definitely bring new people in. I simply don't care enough to advertise for this server though. But you could do it anywhere like on twitch, forums, a bumper sticker, whatever.
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