I don't know how having more players farming is bad for the game.
By SLOWLY increasing the drop rates of an item and NEVER having a drop rate reaching 100% just leads players to feel their efforts are having a positive effect, instead of feeling you have wasted your precious time farming for something to in the end never get it or having to resign from farming it and buy from someone else.
Of course it would have an impact on the market, at first prices would start A BIT lower than before and actually be reasonable prices. But this would ease the gold inflation as many would go for loot farm instead of gold farm, bringing a more balanced market scenario.
The addition of craftable items means that players would have to farm for the materials as well, some may be very common and some be insanely hard to loot, as it happened with undead vials. So these materials would be affected by the rewarding system as well.
Remember that after the item is looted, it's drop rate goes back to it's original %, so it wouldn't create a flood of "x" item.
And no % would ever reach 100% drop rate as I have stated on the concept description.
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