I got to rank 3 a couple of days ago. Having the weekly nightfall XP boost helped.
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I would get 199 xp for a 100 xp bounty. Very easy to reach rank 3. I did yeaterday
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The nightfall boost definitely helped...I hit rank 3 yesterday...rank 3 with the queen gives no reward whatsoever
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The Nightfall boost doesn't affect Queen's Favor. It turns out that having the emblem and shader equipped gives you an 81% boost and then adding the class item to this at rank 2 makes it 99%. It was originally written as 10% per item so I thing Bungie modified it.
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I'm pretty sure it at least did at one point as I was getting more than the listed 10% long before the jacked up the rates.