There is nothing that can discourage PVP more than EXP loss, which we already have now. No EXP loss + item loot enabled gives people a legitimate reason NOT to waste their life getting to level 60, and to hunt players for armor.
PK's will typically hunt for well geared players, which makes for sweet PVP. LVL 60 guys are mad that they can't AFK with their fungi on anymore. So what.
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