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I got this screenshot for this exact comment. This is how it worked in L2
https://imgur.com/a/UkDXZq5
Here in the social tab you see the line of "Karma... PvP/PK"
The pvp counter ticks up when you kill a combatant. PK counter ticks up when you kill a non-combatant. Karma goes up after every non-combatant kill and gets multiplied by the PK counter (not a direct multiplier, but a weighed ratio or however it's called).
If you have 0 PK count, you might get 300 Karma for killing a dude on your lvl. And that kill would give you 1 PK. You can then go and kill maybe 3-5 mobs of your lvl and remove the karma (or you could die and lose XP).
If you then kill another dude on the same lvl, you'd get smth like 320 karma and your PK would go up to 2. The same amount of mobs would be enough again.
After 8 other kills (at whatever moment in time), you'll have 10 PK. And the next kill of the same dude on the same lvl would now give you maybe 1k Karma (I don't remember exact values, but it's not important rn). Now you need twice the mobs to cleanse it, and if you die you'll probably drop a piece of gear and some random resources.
Steven literally copied this exact system and added a penalty of "stat dampening" (with impactful values at higher PK counts). The "increased death penalty and a chance to drop shit" was in L2 so this is not an addition to the system.
So now I say yet again, I understand the system (because I've played with it for 12 years). I didn't misinterpret Steven's quote. If anything, I could've taken it even further in my interpretation and say "you only feel the stat dampening when you go on a murder rampage after already having 10 PKs on you", which would mean that you need even more than 10 PKs to feel the impact of the corruption penalties.
But I didn't say that. I said that at your first PK (your counter being 0) you'll barely notice any effects (if at all). But on your 11th kill (your counter being 10 before it), you'd notice some substantial stat dampening.
And my comment of "deterring mechanisms start to work only around 10th murder" still applies because, as Steven literally said, you will not feel the effects of stat dampening after 1 kill. But after you've killed 10 people (AT WHATEVER TIME), your each new kill will give you a ton of corruption so the effects of the penalty will be tangible.
And on this post I'm going to sleep. If you still think I don't understand a system that I've experienced for 12 years, I dunno what else to say.