This is the medal when you have the most points in the entire match but are on the losing team. I honestly did everything I could to win but because I was paired with people that don't know how to win in the crucible I get fewer marks and rep than that of the person in last place on the winning team even though I did better than every single person on that team. I suggest marks/rep reflect how well you performed. Leave it as is for the winning team, if you get the lowest score in the entire game but manage to be on the winning team you still receive 3/25(or whatever it is after 1.2), but if you score above X amount of points or place in the top 3(just suggestions not what I am demanding of bungie) then you should receive the same amount as the winning team. It fits into the lore of the crucible, a place where you test your skill against other guardians and then do exceptionally well should redeem higher rewards. I can't think of any negative externalities to this suggestions, it will only make those on the losing team compete harder to either win or score more than their teammate. If you have a reason this would not work please state your point of view.
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Winning is nice but if I'm doing well enough to earn that medal, then I feel pretty good about the match. I never even thought of it as an insult.