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There reaches a point when players need to be incentivized to continue to do something. It keeps things fresh and in the players mind they're playing for something that's worth their time.
Do a GST without hats and belts and it will die.
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I agree with the general message to an extent, but I think GST is an exception rn. A lot of the hats in the past 2-3 years were unwearable, yet the same groups of people never stopped entering. That event specifically is less about the cosmetics and more about pride if anything.