From what I understand it takes all the bonus's and penalties from everyones race/class in the group and splits it even so that everyone move the same on there xp bar.
So for example a person with no penalties needs an even 100% of an exp bar to level, then take for example a human SK who needs 140% to get through that same level (because he has a 40% penalty). Since all of your xp penalty/bonus are divided and evened out amongst the group, then in that example if the 2 of were to duo/group, the 2 of you would split his 40% penalty and you would end up taking half of it. So basically you would be looking at 120% exp per level if the 2 of you were to group all the time. If he was a troll or Ikky SK its something like 67% I think? Which would then split you guys at like 133.5% or something like that?
I think the whole idea behind is so that friends of any race/class combo can play together, and never have to worry about one out leveling the other. If a full group of 6 people, all different class/race combos with diff penalties and bonus's, all grouped together everyday and ONLY grouped with each other, they would all ding 60 @ the exact same time, apparently. At least thats how its been explained to me several times ever since the exp penalties were put in a while ago.
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