Did you know this will be a FFA PVP game?

[ColonelTEE3]

Super Tribe A's supply goes up, and their demand goes down, which reduces their need to trade for or make it.

All looting does is change the loot's owner. It doesn't remove it from the economy. Destroying the stuff held by a killed player would.

In a way of looking at it, all an economy is, is the "changing of ownership" of goods, many times, circulating around a network. The decay of items, over time, is what destroys the goods. They may exchange hands but they will still break and need to be replaced. Even good pvpers die and lose gear. Even good pvpers will break their gear. They will never not need a supply of it supplemented from trade.

Even the best fighters in darkfall with all their top-end gear have to do some trading, because you get people who purposely "pre-break" their good gear from duels, so they can use it in a real fight and spite the enemy with nearly broken loot in the chance that they die. Otherwise, they can't sustain themselves only on the good gear of those they kill. They need to trade for it too.

How fast would you want an item that can be made in 5 seconds to decay?

Faster than not at all

Ideally, fast enough that active pvpers would need to replace their gear within a week of pvping daily. Harder to put a speed on decay for crafting in this game, that might just be a matter of trial by fire.