Corrupted Player Killer (PK) and penalties : Could you please expand on that?

At the risk of sounding like a broken record (I am), this system has worked just fine before and will quite likely work just fine here. Don't kill passive players if you're not ready for the consequences.

Btw, the system doesn't automatically punish you. The players do. Those increased penalties will only apply if you die, and I'd hope that you don't just die to mobs so, most likely, your death would only come at the hands of other players.

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I'd say as long as stat dampening doesn't start really destroying your stats until ~10-15 PKs, it'll be fine. A normal pvper won't PK too often so that amount of PKs would take him quite some time to get and any genocidal player would start going down in stats after just 1-2 sessions, if that even.

I'm sure you've seen quite a few "career PKers" that were mainly just dicks to lowbies for no real reason. Imo corruption-related stat dampening would fuck them over way more than it would any normal player who PKs once or twice every other week.