@ Lovely, I think the point is that people will need to feel a general sense of progress. If it is too hard to level up on the server, people will just quit. An xp bonus helps offset the sting of losing xp progress to pvp death.
I don't really care one way or the other, again. But the idea that, over time, the population would stabilize at a lower number with zero xp bonus vs. a slight bonus makes sense to me. And FWIW I agree that a very high xp bonus would cause a lot of disinterest as well, for obvious reasons.
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