It clearly says that after you reach 100% affection/affinity/whatever you can convert your gear into materia, then socket that materia into other pieces of gear.
As YoshiP stated when he first gave word about the Materia system, one of the aims is to stimulate the economy. Having gear be consumed would help to reduce the excess amount of items we have in circulation.



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I can't wait, and honestly think that this feature will push me back into playing the game. Thank you for the good news Bayohne!!


