Not real sure where you came up with the 1:4 ratio. It's 5 lost if you win and 10 lost if you loose. That's 1:2.
Not too sure who said every server has one mega guild. Our server has 3 guilds that seem to trade cities fairly regularly. That said, I think loosing 5 durability for a win is too much. As has already been said, it allows a few alts to totally change the outcome of a battle. I didn't like the rationale they used when they added it, and now that I've seen it in action, I like it less.



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