persistent reputation system ?

Well, this thread will probably end in flames, but here goes:

I've got my own little idea about how to deal with PvP, seeing how bounties are essentially meaningless and can get insta-wiped using a Suicidey: persistent reputation.

That would work like this:

All pilots start out at a neutral reputation level. Any crime that gets sanctioned with a bounty will drop reputation proportionally, maybe twice as much when committed against a player. Consequence of dropping reputation will first be a gradual increase in security ships showing up wherever you are, except in anarchies. These will be ready to drop in if you interdict anyone unlawfully. If reputation goes further down, security will start to actively interdict you more often to scan you and buying prices at non-anarchy stations start to rise, while selling prices drop. Eventually some station services will be denied to you. If reputation bottoms out, you become KOS. Security will then interdict to kill, stations will deny docking and fire on you, again, not in anarchies. Death does not reset reputation levels, the only way of actively getting it back up would be killing wanted targets with equal or lower reputation. Other than that there would only be a slight decay, which would take weeks at least to get back to neutral.

I realize that there are some things in game which this system would hurt. Undermining in powerplay for example. So killing a powerplay enemy in it's home territory should not drop reputation or only with the opposing powerplay faction.

Optionally there could also be the possibility to raise reputation above neutral, by killing wanted targets with negative reputation. This could potentially give better prices at stations, have security scan you less, but any hit against reputation would count double, and the same decay towards neutral would apply.
 
Crime and punishment. A persistent debate in the galaxy.
The problem with a bounty system is that it is exploitable. If Player X is able to accrue too high of a bounty then it is possible for Player X to then "sell" the right to the kill in order for Player Y to get a sudden and large payout. Frontier dealt with this possibility by changing the major faction-wide bounty to local bounties.
The problem with local bounties is that Player A can kill Player B in System Z, incur a bounty, and then just avoid System Z for a week or simply suicide to clear the bounty.
I like the idea of persistence to crime and punishment. CMDR. Numa isn't the first to suggest such a thing.
One thing I'd like to see is players having to pay off their bounty themselves before proceeding to the Insurance on event of ship destruction.
Constant criminals should be treated as criminals. Break too many laws and you should find yourself driven further and further from civilization and into the frontier. Reputable stations shouldn't be willing to do business with known smugglers and murderers.
 
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