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@CEO1234 I'm a little late here, but the thread you linked is not similar. That thread was asking how to eliminate levels, EXP, etc. in RPG Maker. This thread is asking about whether removing EXP-based levels from the game's design would make gameplay better, worse, or both. That's why it's here in the Game Mechanics Design section and it's a perfectly valid question to ask.
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To the topic at hand - while I'm usually a big proponent of getting rid of expected RPG standbys that don't have a good reason to exist in your particular game, and EXP is an RPG standby, it's one of the few times that I say don't remove it without a really compelling reason to do so. EXP is one of those combat rewards that not only always feels useful, but actually contributes to the sense of growth - a sense that is not provided by gold, items, and to some extent even equipment. It provides "compensation" for the resource loss and possibly frustration that combat encounters cause. If you lose that, your game's combat may start to feel hollow and pointless. This shouldn't be the case if you think about it academically, but somehow it is the case and it taps into a part of player psychology that I myself don't understand well.
"I don't want my players to get too strong by grinding" is a reason but it's not a really compelling one. You can compensate for this by simply adding very steep EXP curves into your game - e.g. 100 EXP to Level 2, 300 EXP to Level 3, 900 to Lv4, 2700 to Lv5, 8100 to Lv6, etc. The amount of EXP dropped by enemies would also ramp up in a similar fashion so that if you want players to be Level 3 at the end of the first dungeon and Level 5 at the end of the second dungeon, the enemies in the second dungeon would give 9x as much EXP as the enemies in the first. This way, even players who grind massively (maybe because they got lost in the dungeon; maybe because they just really enjoy your combat system!) will only be one level or so above the "intended" level.
Loot (such as gear) can be tricky as a substitute or alternative for EXP, because it's not always going to be useful, and generally you can only equip one instance of each type of loot at once. Let's say you've found the most out-of-the-way treasure chest and therefore gotten the best sword that's available in the current stage of the game. When you then find another, less great sword in a less out-of-the-way treasure chest, it's going to come as a sore disappointment. It's practically useless to you. "Loot" in the sense of resources (like "crystals", "dust", and similar resources you often find in free-to-play/mobile games) that is used to upgrade stuff perpetually can be somewhat rewarding, but honestly I always find that such games feel twice as good when they directly offer EXP.
So consider keeping a lot of the things you're planning on doing - such as rewarding exploration with loot - but also keeping the basic EXP system intact, and designing around a very steep EXP Curve in order to tightly control the player's level based on how far along he is in your game's narrative.
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To the topic at hand - while I'm usually a big proponent of getting rid of expected RPG standbys that don't have a good reason to exist in your particular game, and EXP is an RPG standby, it's one of the few times that I say don't remove it without a really compelling reason to do so. EXP is one of those combat rewards that not only always feels useful, but actually contributes to the sense of growth - a sense that is not provided by gold, items, and to some extent even equipment. It provides "compensation" for the resource loss and possibly frustration that combat encounters cause. If you lose that, your game's combat may start to feel hollow and pointless. This shouldn't be the case if you think about it academically, but somehow it is the case and it taps into a part of player psychology that I myself don't understand well.
"I don't want my players to get too strong by grinding" is a reason but it's not a really compelling one. You can compensate for this by simply adding very steep EXP curves into your game - e.g. 100 EXP to Level 2, 300 EXP to Level 3, 900 to Lv4, 2700 to Lv5, 8100 to Lv6, etc. The amount of EXP dropped by enemies would also ramp up in a similar fashion so that if you want players to be Level 3 at the end of the first dungeon and Level 5 at the end of the second dungeon, the enemies in the second dungeon would give 9x as much EXP as the enemies in the first. This way, even players who grind massively (maybe because they got lost in the dungeon; maybe because they just really enjoy your combat system!) will only be one level or so above the "intended" level.
Loot (such as gear) can be tricky as a substitute or alternative for EXP, because it's not always going to be useful, and generally you can only equip one instance of each type of loot at once. Let's say you've found the most out-of-the-way treasure chest and therefore gotten the best sword that's available in the current stage of the game. When you then find another, less great sword in a less out-of-the-way treasure chest, it's going to come as a sore disappointment. It's practically useless to you. "Loot" in the sense of resources (like "crystals", "dust", and similar resources you often find in free-to-play/mobile games) that is used to upgrade stuff perpetually can be somewhat rewarding, but honestly I always find that such games feel twice as good when they directly offer EXP.
So consider keeping a lot of the things you're planning on doing - such as rewarding exploration with loot - but also keeping the basic EXP system intact, and designing around a very steep EXP Curve in order to tightly control the player's level based on how far along he is in your game's narrative.