This post has been revised many times so I will try to consolidate and pair off the different types of ideas to make it easier for new people to get in on the conversation.
General Idea:
I would like for there to be an optional building that can be placed within military nodes, possibly economic nodes too, where players can sign up to fight in a blood sport against other players. These fights will either be solo vs solo or group vs group. This battle will be to the death and all gear will drop for the winning team to loot as a reward. Other players will have the ability to bet on who will win the fight while watching from the stands. The winning team will gain a percentage of all bets cast while also increasing their ranking within the Theatre of Carnage.
Just to be clear, this will not be an instanced arena, people will be able to freely walk into the stands and watch each fight though they will not be able to enter the pit itself.
Alternative to Full Loot: Instead of players dropping the gear they are wearing, the gear would instead drop to 0% durability and grant the winners the "repair cost" in materials for the gear broken in this manner. The amount can be changed as necessary.
Cosmetic Pieces:As another alternative loot system, players could drop special "blood-soaked" material tokens for one random piece of gear they were wearing. This token in addition to the ordinary materials required could be taken to a crafter to make a Theatre of Carnage variant of that equipment piece that is essentially a color or design variant of the original equipment. This alternative would mean each player only drops a single token rather than materials or their full loot.
Alternative Building Names:
Murder Pits
Colosseum
Matchmaking Mechanics:
These matches will have set times that can be signed up for spread throughout a day. A team will sign up for a time slot and a moderate amount of time before then the system will alert the players of each team to show up. If they do not accept the invite a new team is chosen. This repeats until a match is found or the time limit is reached. If a match is not made in time there will be no fight. Players that sign up for a timeslot should be heavily punished in rankings (or some other form) for skipping out on a fight they have signed up for.
Battle Mechanics:
The team sizes currently suggested are, 1v1, 2v2, 4v4, 8v8. Using 8 as the standard adventuring party I split down from there. I have no other real reason for the team sizes than that.
When a Team is defeated their gear will drop for the enemy players to loot but in a damaged state that will require repairing before it can be used.
There are no plans for any traps, mechanisms or terrain within the murder pits. a bowl of sand, broken teeth, and blood is my current suggestion.
Gambling Mechanics:
When a fight is announced other players can come to watch the fun and choose to bet on which team will win. (possibly a minor fee to enter)
My current suggestion is to have the amount you can bet be determined strictly by the system after calculating difference in ranking and item level of the two teams.
Taxes should be applied appropriately to generate funds for the Node itself.
Suggestion to circumvent being against gambling law: Any gold earned via this gambling system becomes an account bound currency that is used to pay taxes and various other system-based costs. Basically removing the ability to trade with players but still letting it be a useful resource.
Other Suggestions:
Instead of it always being a random enemy team we could also mix in elite monsters/npcs as part of the queue. These would have different rules than your standard pvp fights. Firstly, players would not drop their gear should they fail to beat the monster. If the npc wins the percentage that would normally go to a winning player will instead go to the Node.
Expanding on the previous idea, instead of an AI as an opponent we could instead use monster tokens or even animal husbandry to create monsters to fight with. This would work similar to the champion idea that was mentioned for the Battle Royale mayor choosing competition. You would have an npc or monster that can be geared out or augmented the higher your rankings.
When defeating either an npc monster or a player controlled monster they could drop a Race Token. A Race Token would be a consumable item that, for a period of time, grants the player a bonus to certificate drops or experience when hunting creatures of that specific monster's race. Additionally this token could possibly be used as part of a crafting recipe to create Trophy Stands. A Trophy Stand would be a taxidermized version of the monster slain that when placed in a house or other building, players would be able to gaze upon it and gain a small boon. This boon would give them a minor bonus to experience, certificates, or damage/defense against that monster's race for a decent amount of time. These trophies would work similarly to food buffs that have been talked about previously.
(If you have any suggestions post them below and ill add it to the list here)
Don't forget to like the post and share with your friends if you like these ideas!