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I would say no, since you always want more loot. It will probably just stop at a certain number but keep going with the tickets and xp, like the 20 cap and motes or light
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Yea it would break the model of faction in other games. You gain rep to unlock a item. And even ingame lore-wise, how much can you do for a group before you are more apart of a faction then the vender.. But how they would incentives this would determine if it would be done.