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My point was that trading something worth 10 g for something worth 2500 would cause a bit of an imbalance in the loot system. Especially if you could then sell that item (costing 1250 at resale, it would become 10 times more valuable than the best loot as of now).
Aside from that I like the idea, but it would require some rebalancing to the system - either those 2500 value jars would be reduced to a much lower price (not likely), or the loot type jar would become exceedingly rare to the point of obscurity (also not likely).
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I agree more with the idea of giving the jars or other technically useful objects more of a rarity. I suppose it would be better than rebalancing anything. I suppose an easy way to fix an imbalance would be to simply add more loot items, which wouldn't be too hard.
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How about we have some fixer upper npc that fixes these looted items into usable/ place-able items in our house. Okay, maybe only some items.
Or how about we have discounts for certain furnitures for trading in X amount of a specific loot. Like that Bug Jar, 50 looted jars=50% off the Bug Jar. Thus, making the cost cheaper to 1500, which is still high but better than 2500. Other loots include: tin cans, arrows, bombs, signs, vase, flat soccer ball, etc. Players gotta start recycling these, not just the npcs.
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Not a bad idea, but it is not going to be easy finding larger numbers of specific objects since the loot cap is 200.
I don't think we necessarily need a recycler since we have the hoarder hobo. But in case we don't get more loot items, and/or don't have the jars or other objects substantially increased in terms of rarity, we could see a discount system.