When a player who is not grouped contributes meaningful damage to a mob, they can receive no experience, no loot, and no indication that their contribution counted. Meanwhile, the grouped players receive full rewards. This creates situations where groups benefit from additional damage without any incentive to invite or acknowledge nearby players.
This matters because the system actively works against cooperative play. Players who want to join in and help are punished for not already being grouped, while established groups are encouraged to ignore or exclude them. Asking for an invite is often declined due to loot concerns as loot is already extremely rare, reinforcing this behavior.
This affects gameplay by turning shared quest areas into zero-sum interactions. Contributing to fights without being grouped is often a net loss of time and progress, even when the player is within the intended level range. Instead of promoting inclusion and social play, the tagging system incentivizes groups to remain closed and discourages players from engaging with others.