I always liked what Asheron's Call did for their FFA PvP server Darktide for item loss. You would drop a number of items based on the level of your character except for No-Drop items.
So like this for a PvP death.
Level 1-9 drops 1 item
Level 10-19 drops 2 items
Level 20-29 drops 3 items
Level 30-39 drops 4 items
Level 40-49 drops 5 items
Level 50-59 drops 6 items
Level 60 drops 7 items
Items included everything on your person both gear and inventory and items dropped were determined by value. So at level 60 you would drop the 7 highest valued items in your on your person/inventory. This made it so you could carry "Death Items" or high valued items that would drop on death instead of your own gear.
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