Coin loot works well in my opinion. I don't think we need much of an incentive to pvp beyond that and zone control. Item loot might be ok but it can get sloppy and seems to stunt melee class growth since they are more gear dependent.
Exp loss for pvp death is just unnecessary. One of the reasons so many stopped playing EQ years ago was the steep exp penalties for death. If you want people to play on an emu server for a game this old you're going to have a hard time enticing people if you make it harder than it was to begin with.
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