No, it probably won't, it would destroy the game's economy.
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Gay , that would be so sweet
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No, it really wouldn't, soon you would see people selling each other exotics and legendaries, it would take no work or skill to get one.
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Friend to friend yeah, you'd still need to be certain levels to equip, and also they could limit the items as well though .
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Then experienced friends would just give their friends who just reached 20 a plethora of good stuff.