Increase the exp to get more people playing so more pvp happens. Its already been discussed it wont hurt any. It was like that for months and kept people playing for months.
Without exp increase I don't think no xp loss on pvp will matter much for low levels, it really only benefits higher level characters where xp death costs them more time to recover.
Its just like education, the future of the server is with the new players and low level characters.
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