Hello.
I know I've posted another message concerning death drops and allowing others to pick up your loot but just a few minutes ago I remembered a game which had a very basic way of punishing players for dying, and it didn't have anything to do with dropping their loot nor reducing the players XP.
I can't remember the name of the game but this is how it would play out. If you die you keep all of your gear BUT you lose a random piece of your loot. Then a 10 minute death timer would begin counting down, and if you died again within that time period you would then lose two pieces of loot, and the countdown timer would begin from 10 minutes once again, and of course you know what happens next. Die again within that time period you then lose three and so on. Once the death timer reaches zero and if you die then you lose one item and so on.
I found this particular game mechanic interesting simply because I've seen myself while playing the game work hard to gather loot I really needed only to have it disappear which of course meant I had to find another source of that material which of course I did find and I thought no point in going back just yet and continued rummaging only to be swarmed and I was still in that 10 minute cooldown then not only lost that loot again but now I lost my main weapon.
Point is that level of punishment really woke me up to the understanding that take my losses and try another way. Of course this would be an option players can choose in the game setup and also set a cooldown period which suits their style. It also made me aware to not think I'm invincible, and think more about what gear I had on me and is it worth losing since some of that gear would take me a long time to make since resources might be very difficult to find.
Note: What is in the game now is fine and doesn't need to be removed at all but adding this particular death penalty I've mentioned would I think be something some folks would enjoy having. I know there may be people who will argue against this and that is fine.
Anyway, Just thought I would make this suggestion to the developer.