As far as I can figure, the most balanced PVP reward system would be either:
1)A PVP currency where participation garners amount "x", 1st in kills would get amount "x(4)", 2nd gets amount "x(3)", and so on.
2)A drop-based system along the same lines, where everyone receives a uncommon(orange?) PVP drop and has a different base percentage for dropping a green/purple/pink respectively, and there is "+ x%" chance of a pink PVP-gear drop for 1st, 2nd, 3rd, etc.
All of this would require PVP to be balanced between classes(I'm not saying it is or isn't, just saying it would need to be), as well as involve STS creating a whole new set(s) of PVP gear for each class along with a scaling model for the size of each PVP room (i.e., if it is 2v2, you need to scale back reward percentages/multipliers vs. a full room.)
Anyway, like I said, would LOVE to see this or something similar implemented in SL.
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