I read it as this:
Craft/buy gear.
Earn 1 exp.
It is now untradeable.
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Character bound gear . Some MMOs prompt you when you go to equip an item saying it will become bound to your character. What SE is saying is once you kill something while wearing that gear you will not be able to sell or trade that gear to another player. Crafting or harvesting while wearing gear will bound them to your character as well.
This is to take items out of the market so it's harder to flood the market and keeps prices from collapsing.
Best thing honestly if in Beta we don't like it: Tell Square to change/remove it. This system might not suit ARR.
But remember! They're making it so that converting enhanced and HQ items makes better materia!
I think this was how it was supposed to be in 1.0. Remember than when you sold or traded an item, the spiritbond would disappear. But the limitations of 1.0 wouldn't let it become ex, so that was the other fix they did to keep people from trading "bonded" items.
I'll have to see what the changes to the materia system are before I cheer or cry but I think I'll be good with it.
As a crafter, I hate this idea. Yes, it will take a lot of items out of the marketplace but I love giving friends my hand me downs or repairing their old items so they could sell them to use that money to get newer better stuff.
Also, how many people have bought a pair of intelligence modified mahogany pattens only to find they weren't for a casting class? If they happened to use them for a moment on another class before realising their mistake, that buyer's remorse can't be satisfied by simply putting them back up on the market wards anymore.
I don't support this binding system at all. Even though I am a crafter, it still seems wrong, very,very wrong...
I dont see how good for economy you see this! Really, if you like it to get stuck with your old clothes instead of having the chance to give it to one of your friends or just tryin to make some bucks out of it. But hey if you like keeping your old triple meld materia III-III-II ounce you done one with (IV-III-III) or (IV-IV-III) im glad you think its worth to put old stuff in the garbage or sell to NPC.............