Dragon kill points (usually abbreviated with the acronym DKP) designates a kind of currency which is earned by participating in endgame raids and spent by acquiring loot from endgame bosses. The term DKP is also frequently used to designate raid-level loot system in general. The most popular systems for endgame loot distribution are point-based (and thus DKP systems).
What is DKP?
DKP, short for Dragon Kill Points, is a concept originally created by Thott of Afterlife, at a time where the only two raid targets in Everquest were two dragons, Lady Vox and Lord Nagafen. These points are awarded to each guild member as they attend a guild raid. The current DKP of each member reflects his or her priority for loot. When a member "wins" an item, they lose a DKP amount that reflects the value of that item.
DKP allows for an unbiased comparison between guild members when decisions about loot are to be made based on attendance and recent items that have been awarded.
The bidding system
There is a wide variety of different bidding systems in use by guilds around the globe; however, again there are two mainstream variations. In variation A, members attend raids and when loot drops, members interested in the loot sends a message to the loot distribution officer with a bid of their chosen amount. However, the bid sum cannot exceed the amount of DKP points said member has earned thus far. When everyone is done sending their bids, the loot distribution officer then awards the item to the person with the highest bid, and records the amount of DKP spent on the item.
An example: Member A has 157 unspent lotto DKP (lotto DKP = DKP + IDKP, see own section) in the system, and bids 75DKP on X drop. Member B has 189 unspent lotto DKP in the system, and bids 60DKP on X drop. Member C has 234 unspent lotto DKP in the system, and bids 10DKP. In this case, the loot is awarded to Member A due to him/her placing the highest bid – regardless of the fact that Members B and C have a higher total of unspent points.
In this system, the value of the item is solely determined by the members of the guild and the general demand for the item. This means that if the item is very popular, it will sell for a much higher value than the second best item for that slot. Also, it means that eventually, people who decide to "sit it out" and wait until there is no more competition left for said item will get it at a much lower DKP cost than the first members to get it. The result of this is that Member A might pay 75 DKP for an item that Member X pays 1DKP for later.
Variation B follows much of the same rules as the first one, however in this system the loot distribution officer or guild leader, depending on how the guild functions, sets a minimum price on the bids, meaning that regardless of demand for said item it will never be sold for less than X DKP. This somewhat evens out the amount spent between Member A and Member X.
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