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there are ways you could lower the full list of sparers. You could remove anyone hasn't spared in 7 days(arbitrary number), you could also have it be weekly or monthly. It would be based on the results of the previous week or month. There of course would be some worries in a static ranking, you would need some sort of requirements from appearing on the board. Maybe over 1k spars? The reason for that would be so you couldn't say, boost your noob to a stupidly good record, then boost off of the noob to gain a crap ton of points very quickly.
Now how that list would be decided would be more difficult.
Win ratio? Activity? Total points in the previous system? Community consensus?(okay, probably not that one). I just don't know how you could start it off.
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It's been implemented before for everyone on the PC Classic server:
1. Add the winner to the tail of the list if they're not already there.
2. Add the loser to the tail of the list if they're not already there.
3. Assuming there's nobody else in the ranking lists yet: N=2, R=2, S=1.5, 100*ln(S)=41 (rounded)
4. Update the winner's position in the list
If nobody else spars, they do round 2, and the previous loser wins: they get 109 points. If they do round 2 and the loser loses again: it's another 41 points for the winner, or 82 total. As long as neither player is dominant, they can flip positions all day long. The major problem would be elitism in selecting spar opponents. If neither player fights player 3, then player 3 will never be able to catch up to them. Perhaps number of opponents would be a good factor to throw in?
If there's an upper limit on the number of ranked players:
1. If there are qualification slots, add the winner to the tail of the list.
2. If there are still qualification slots, add the loser to the tail of the list.
1. R=N+(arbitrary) for wins against unranked players.
2. Update the winner's position in the list.