I wouldn't build something this way because I believe (without solid evidence) that Pyramidal power structures in MMOs such as what you described are bad for retention.
Btw, do you have an example for an mmo that did this interaction better? Was ff11 that? If yes, is there a way for me to read that w/o you spending a ton of time explaining it to me?

Don't want to bother you for a completely off-topic discussion (cause while it might have economic impact, I see this as more of a "powerlvl design").
Not exactly. FFXI has no PvP to speak of, and therefore the interactions around the 'bosses that drop good gear', while cutthroat, were still limited to 'making sure you got the pull' and so on.
But I'll try to give some context and you can decide which things to read up on. This is gonna seem quite meandering at first, so sorry for that.
There's a reason why countries like Belgium have legal requirements that you either show the exact odds on your lootboxes or don't offer them in their country. BDO is sometimes not allowed to sell lootboxes in Belgium because those lootboxes offer the chance to win OTHER lootboxes that are NOT allowed to be sold in Belgium.
This is because scamming ordinary people using probability deception is very very easy. For that, you can just look up 'laws about lootboxes in Belgium' and it will send you down a glorious rabbit hole of information about why it works that way.
But RNG is streaky and misleading when you say 'this is fair when applied across enough people'. And things that sound very intuitive and fair are sometimes VERY not.
We will use one item from BDO, the 'Witch's Earring'. In BDO, to raise such an earring from base to 'PRI', you simply combine it with another. The odds most people go with? I'd say around 40-50%. Failure loses both earrings.
The cost of a PRI Witch's Earring is generally approx the cost of 3 Base. Because on AVERAGE half of the attempts to make this item use 2 and create a product and half of them destroy both items (we're ignoring the ability to prevent the loss of the item).
It is in my best interests as the villain, to always buy PRI Witch's Earrings and hoard them when supply is high and costs are lower. I am paying the successful people 'less than average value'.
When Supply is low due to streaky RNG resulting in more failures than successes on average in a given period, the prices go up. The people who are making more money because of higher prices are happy, but the server as a WHOLE is 'losing time/money' farming Witch's Earrings and destroying them.
The Pyramidal power structure is based on the idea that to the 'Oligarch Villain', BOTH sides of this activity are feeding THEIR coffers, and slowly ruining everyone else on AVERAGE. It's slow. In BDO it's like 16% bonus to the rich at its HIGHEST (this is approx the range allowed in their Central Market for most items).
It's the same way that you can get the poor to toil in the mines to generate far more value for you, than they get. They don't have the capital to start their own mining operation. You could sell timeshares to try to mine a spot. It's a casino. The house wins.
MMOs fight against cheaters, so do casinos. As the 'Casino owner' the Devs are obligated to fight cheaters FOR me.
The goal is always to become the Casino owner and take advantage of the fact that other people don't understand statistics, OR like Gambling. Gamblers are fine with this. Societies are not.
The top of the Pyramid always wins. This gets worse in games where mob drops have 'innate value' because people who decide 'I'll just farm instead' aren't generating value, they're generating INFLATION, and the House holds all the Value. The Devs then implement Deflation measures, the House sells all the items as soon as this happens to get Capital, and another multiplier happens.
I am rich in BDO from playing their MULTIPLIERS ALONE. I don't farm. I don't sell normal things on the AH.
Historically, MOST of the rich BDO players that win at money, ALSO win by just playing the Multipliers.
RNG Enchanting is a good one for big rich guilds to use. It doesn't matter how many guilds there are. The predatory part of it all happens because you can't control market prices on a shift-supply without regulation/losing money yourself.
And that's why you can't sell Lootboxes in Belgium.