How we Duel

lol, good joke.

In other games duels are simply for fun, to test your abilities against others. In a game that is based on risk vs reward, duels only add risk but minimal to no reward. And just like in many other cases, you won’t duel and risk your stuff, unless you are sure that you will win.
Duels should be about reputation and honor. You can have rewards for being good, but you can’t punish people for not participating in duels.

This is how I would change it:
Add a new corporation to “control” the duels, probably a sub-corp of Concord (this will be important). They will track the results and the ranking, and give LP based on the results. The LP store should contain things that you can’t get any other way, special skins and clothes most likely, maybe Concord ship BPCs.

After you had a certain number of duels you can subscribe to get duel challenges: based on your ranking the corp will assign you an opponent with the same rank, and the challenge also contains a type of ship you both need to use, T2 cruiser for example. The challenge will have a time limit (1 week seems reasonable) and you may only have one active challenge at a time.

Special rules for the duel: if you are in a fleet with anyone, or not using the set sip will result in losing the duel at the start, regardless of the actual outcome. Warping away, docking or using a gate/wormhole will also result in losing. These will only affect the ranking and reputation, which is the main reason to do this.
Declining the duel will result in ranking loss. Not doing the challenge during the set time will somewhat lower the ranking of both players and automatically unsubscribes them from the list of challengers, to prevent not active players from being rolled.

Interrupting others’ duels: this is when the corporation’s connection with Concord comes in. People in duel will be marked on the overview so everyone will know what is happening. Interfering by using either offensive or support modules on either participant will result a huge drop in your duel ranking (if you have any) and have the same effect on security status as attacking people in hi-sec, even if if the duel takes place in low, null or w-space.

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i like this better than my own idea. having duelist standing would be a great feature, as it highlights 1v1 skill.