I was thinking each rank would be upgraded differently. So first rank may be a quest.. 2nd rank may be a drop in a higher tier zone that combines with previous rank.
I am looking at the idea of weapon augments that change the texture of weapons as well. Which will be semi-rare to very rare drops depending on how badass they look. They will be type specific so you can only place dagger graphics into daggers and so on.
I am at the starting stage of development so some ideas may change slightly.
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