Effort Points and Gear Points
EPGP is a very fair priority system that we use to distribute loot. It rewards for your time spent in raids and progression while raiding. It also rewards for other effort you put in to help further the guild as whole, i.e. farming materials for the guild bank, donations for raid repairs, etc.
In its most rudimentary explanation, it is a system that allows more loot to be spread around by placing priority for loot on those that have not gotten loot over those that already have. It also alleviates the ability of people to completely "hoard" points or skew the system to where one person is dominant. It does allow for one to save their priority for that ONE item they want, but normally it doesn't take long for people to realize that with the decay it is better to use your priority sooner than later.
Its that simple...
The basics of who gets the loot are determined by 3 factors (Priority Rating, Rank, and Spec):
Effort Points (EP) are divided by Gear Points(GP) which equals your Priority Ratiing(PR)
The EPGP system is based upon 2 separate point values, Effort points and Gear points. These points make up your Priority Rating.
Effort points are the points awarded for attendance to raids, learning boss mobs, and boss kills. These are basically the "points you are earning every time you raid", what we refer to as "Raid Awards".
The second point value to be noted is Gear points. Gear points are the value assigned for every piece of loot awarded to a person. The value is based off the level of the item and where it is equipped. This keeps the value the same no matter who it applies to. These are basically the "points given to offset your effort points when you get gear". Notice, these points do not "subtract" from your EP, they always "divide", so you will always have a positive Priority Rating (PR).
Think of it as simple as this:
You earned 10 Effort points for killing Big Boss Meaniehead, and you get your Tier 19 chestpiece which costs 2 Gear points. So the math is: 10 divided by 2, giving you a Priority rating(PR) of 5. Those that didn't get gear would still have a 10 PR, which is higher than 5... so they have priority, until they get gear that drops them below your 5.
(The Rank part of the system many times is not a factor as the majority of the time all members in the Raid are at the Raider rank... and thats how we like it.)
Based on the above, we know that priority for loot is determined by a person's current effort point total divided by the person's awarded gear cost. Here's an example of how it would work in a raid (both BadassTank and LeetMan are considered Raiders in this example):
BadassTank has 1000 effort points (EP), and has received 1 piece of loot which has a gear cost of 250 points (250 GP). Currently, BadassTank has a priority of 4. (1000/250=4)
LeetMan has 1150 effort points (EP) and has received 2 pieces of loot, one being 100 points and another at 200 points. This gives him a GP of 300 points. Currently, LeetMan has a priority of 3.833. (1150/300=3.833)
Both BadassTank and LeetMan "bid" on the same piece of loot, and since BadassTank has a higher priority (4 > 3.833), the loot would be awarded to BadassTank.
Further, with time, both effort points and gear points decay. We decay both sets of points by 30% each week. In other words, as time goes by, the effort points you've received prior will diminish, as will the gear points you have been charged. This makes it so that members are not penalized eternally for gearing up and it makes it very unwise to try to "hoard" your points.
From the time effort points are earned as well as loot awarded and gear points charged, both effort points and gear points decay. Points will decay to 25% of the original award/cost over a 30 day period. In other words, if you received 100 effort points for a particular raid, that 100 points will decay over time to 25 points within 30 days. Also, if a piece of gear cost 100 points, the ultimate price of that piece of loot after 30 days will be 25 points.
This keeps the Raid Group constantly moving forward by being rewarded for what they do now and not sitting on points earned long ago.
With the mod that we use in game, these loot decisions are made near instantly by members and loot is quick and painless. It may seem a bit "mathy" here, but once you see it in use in game most people quickly catch on. Everyone gets a fair chance at loot and its based off the effort they put in for the guild.