It is increased when more people are around. I don't know the exact formula. My point was that it's not increased by enough. Years ago they changed how the gralat drop rate works, because beforehand, the increased drop-rate was a result of lag (or so I understood). By creating their own formula to increase the gralat drop-rate when more people were around, they actually significantly reduced the gralats that were dropping. Public farming basically stopped at that point. I don't know if any changes have been made since then ( because I stopped playing for like 2 years) but based on what I've observed, and the increased risks of public farming, I think the gralat drop-rate deserves a boost.