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Another major complaint in MMORPG's is death penalty. In DaoC, it is dealed with in a new way: The most important fact is that equipment never gets lost - so there's no more unprotected trips to dangerous places where one died. Until one reaches level five, there is no death penalty, but after that, players lose experience and get a constitution penalty. This can be recovered praying at the character's grave built at the death place or paying an NPC healer for a restoration service. It is very interesting, that players can be resurrected by clerics without any penalty, making them very valuable.
