Ancalagon
Dusty Dragon
This is a very interesting thread.
I think the OP's method of basing reward on threat level and town pop is as good as any, and quite quick to calculate. It also makes the DM consider how many people are living in this particular town, which is also useful when thinking about guard numbers, item availability, # of spell casters, and so on.
Thank you. When I did my estimates, and the number of taxed GP/individual came to around 21.9 gp... well a very straightforward guideline just leaped at me
And yes, population size matter for # of guards, mages etc. As a general rule, agrarian societies could rarely manage more than 5% of the population in a standing army. This is why nomads like mongols ... or orcs... could be such a threat, as frequently most adult males were effectively warriors.