Well xp loss on death merits a bonus I think in a classic world. It doesn't hurt with the lower pop either. Nihilum may bleed members at some point and have to PL and it helps new people get out of the "push auto attack and stare" levels for hybrids and shit. /shrug , it makes most people happy too.
Not that there were any 4 level limit FFA servers with xp loss on a death or a bonus on live... which I'll just stop talking about (you're welcome).
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