This is the exact text of the RCFG material I am working on (now putting things into final order, crossing the "T"s, dotting the "I"s, and formatting, formatting, formatting). It is OGC if anyone wishes to use it:
Experience Points
Characters gain levels by amassing Experience Points (XP). When a character has enough XP to qualify for a new level, the character gains that level. See the table on page XXX for more information.
If a character loses XP, and that loss would place him below his current level, he doesn’t lose that level, nor does he gain any special benefit from reacquiring the XP needed to be his current level.
Experience Points are usually gained by defeating opponents and squandering treasure.
Every creature has an XP value, which is gained by defeating (but not necessarily slaying) the creature. Experience Points gained from defeating creatures are usually divided among all characters that faced that creature.
A PC can also squander treasure, gaining 1 XP per 1 gold piece (gp) so spent. The PC doesn’t spend this money on equipment, or gain any benefit from it – this provision is intended to simulate the Sword & Sorcery trope where the hero(es) gain some vast wealth at the end of one story, but has lost all that treasure by the beginning of the next. In fact, if the character gains any other in-game benefit from the treasure in question, it is not considered squandered.
In order to squander treasure for XP, the treasure must be recently earned through undertaking some form of adventure. In the event that the treasure is goods sold, the character may not have gained significant use of the goods prior to their sale.
Squandering treasure in this way may represent many things – largesse, foolishness, theft, drunken debauchery, or whatever the player desires. If a character is offered a reward, and meets the conditions of the reward, but refuses to accept it, the treasure she would have gained is also considered to be squandered.
The GM is permitted to demand an explanation for how any treasure squandered is actually lost, and may work the explanation into the fabric of the campaign milieu. While the player may not demand recompense for treasure squandered, it is perfectly acceptable for the Game Master to give the character a reputation for generosity, links to seedy gambling dens, or whatever else is appropriate.
The GM may rule on what “recently earned” and “significant use” mean on a case-by-case basis.
The GM may also grant XP for meeting story goals, role-playing, or whatever else he deems appropriate. Experience Points are usually granted at the end of a given session, or at the beginning of the next session. The GM may grant XP during a session, or wait several sessions before granting XP, if he deems it appropriate.
It is not generally possible for a character to gain more XP in a single session than is required to attain the next level, plus halfway to the level beyond that. Any additional XP are lost. Thus, a starting character can never gain more than 1,500 XP during his or her first session.
Experience Points may be used for other things in addition to gaining levels. Among them are:
- Boon Companions: A character may spend 10 XP to make a follower or animal attached to him into a boon companion. A boon companion becomes a Champion Class creature. The player is then able to expend additional XP to increase the creature’s Hit Dice or class levels.
The creature is treated as though it were Level 1 to determine XP requirements, unless it already has class levels. Creatures can gain either raw Hit Dice, or class levels, as is deemed appropriate by both the GM and the player involved.
For more information, see Chapter XXX, Section XXX: Henchmen, Hirelings, and Followers.
- Magic: Some spells, incantations, and rituals may require the expenditure of XP. See Chapter XXX: Magic and Spellcasting, for more details.
- Special Training: In some cases, the GM may allow characters to gain special training in exchange for a set amount of XP. Special training is always a unique reward, gained from access to some form of trainer. For instance, a fighting school might offer a bonus on a particular type of manoeuvre or fighting style, or a faerie creature might offer the means to alter how one or more spells are cast. For more information, see the RCFG Game Master’s Handbook.
Not exactly what existed in the early D&D campaigns, but of some use (perhaps) to those who like this sort of thing.