I see a lot of people wanting XP loss on death. I don't agree with this, primarily because systems like this typically encourage players to leave to play other games.
But what about specific powerful mobs that spawn in certain areas that will cause to lose exp when they kill you?
These mobs would have better drop tables, much higher exp but be much more difficult, requiring good party tactics to defeat. Plus, dying to one would cause you to lose exp.
This would give the masochists what they want (having something to punish them for failure) while also giving a better way to level for players who want more of a challenge.
Thoughts?