You are not gonna have this "limited" loot problem if you bring back the random roll on weapon and armor. I understand why Bungie limiting the reward loot for faction rally, in D1 we have bunch of loot in each faction with the RANDOM ROLL and people will grind for it!!! Even each faction only have 1 or 2 good weapon. And now you making it with monthly event with only 1 new weapon each faction with fix roll! And in the next 2 weeks we are going have Iron Banner event, i hope lord Saladin are not only bring 1 new weapon. I liked the new ornament, but it was just a cosmetic.
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Being realistic here, they shouldn’t limit the engrams you can get in the first place. It can’t help you hit 335 so the progression is already stalled right there; you might get something you don’t have yet, or you might get a piece of gear with a mod you wanted(that will 99% likely be worthless blue tier anyway), but you won’t really raise your level at all.
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The loot i'm talking about here is not about engram from faction rank cap. Its about variety every month we can get 3 new weapon and 3 new armor, just like iron banner in D1.