Luck Points

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I've given up on XP as suggested on p. 121, DMG. However, as I am used to using XP in the old-school way of promoting player involvement and participation (by giving roleplaying XP rewards, etc.), I wanted to implement something that had the same sort of function. Therefore I've come up with a Luck Points system. It already seems to be working better than XP as a motivator of player participation in my game, and has the added bonus of providing an additional source of drama and epic-ness to the game, as well as, hopefully at least, giving players an enhanced feeling of control over the game and their fates. I was hoping to get some comments and feedback from those folks here that are far more familiar with the intracies of game balance, etc. than I am (I'm a storyteller, not a number-cruncher). 

Check it out if you don't mind: Luck Points system

I know that the first complaint that I'm going to get is that it overpowers the characters and unbalances the game. I realize that, and I'm okay with that to a degree--but only a degree. I have an understanding and intelligent bunch of players who aren't going to go out of their way to break the game with this rule (and I can rein it in if it comes to that), but I am worried about the long-term affects on the game, especially once we start getting into higher levels (if we ever do; I run a slow game).

P.E.A.C.H., but please don't just say, "this is a terrible idea; don't do it." Help me find a way of achieving the same sort of result, either by modifying or replacing this system.
SyDarkSun, my 4e Dark Sun campaign
I like the idea, though in practice it gets things a bit overly busy in 4e at higher levels. I tried a simpler version of this,once, and with so many utilities that do many of these things already, people kind of found the points bothersome to keep track of and not worth working for.

I really like dramatic death. 

Reroll is much more powerful than +1 mathematically, especially since it is after the outcome is announced. The +1 might be entirely wasted, while the reroll is less likely to be so.

I'd say an AP is worth more than a second wind, unless your a dwarf. In most fights i've seen where second wind is used, its usually used with an AP to mitigate the loss of attack. Otherwise ther's a good chance the monster you did try to kill will just poke you and you'll be 1 surge lower than before.  

Hinder Other: Do you mean creature? Character implies players in 4e writing style.
Thanks for the tips! This is exactly the sort of feedback I was hoping for.

I did notice that a lot of the bonuses granted by luck are included in Epic Destiny powers, etc. That's one of the things that worries me; I don't want to cheapen those epic powers.

Character/creature: You're right! Thanks!

I'll reevaluate based on your other suggestions as well when I get a moment to think.

Keep 'em coming, people!
SyDarkSun, my 4e Dark Sun campaign
Really? One comment? Has the traffic slowed down? The last time (a couple of years ago) I posted a homebrew mechanic I got what seemed like dozens of responses...
SyDarkSun, my 4e Dark Sun campaign
These forums seem to have gotten extremely slow lately.

That said, I wouldnt worry too much about Epic Destiny powers. I wouldn't view it as cheapening them, but rather having Luck Point abilities on demand. A player now has that ability without having to spend a Luck Point, they could save it for something else, or on an additional use.

Don't forget technically Elves have the reroll ability 1/encounter.