I would like to add that should you continue leveling up ANY reputation (crucible, vanguard, factions), you are guaranteed a legendary or better every rank past rank two. So if you were to hit Vanguard Reputation Rank 3, for instance, you'll get a legendary item and some higher tier upgrade materials from the postmaster.
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I did this.. Twice.. Got 2X2 blues both times. Guess who feels shafted
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Yeah I hit new monarchy rank 3 and it gave me a legendary rocket launcher . That I won't use lol , legendary zombie apocalypse machine gun is the way to go lol : )