How is it punishment?
It is because if You're person familiar with the game or
competetive one, You are being hold by artificial schackles.
People would catch up with the stat cap and then worry less about the stats
Sorry to wake You up, but no. People would try to find any possible way to gain advantage over somebody else AND there would be still be problem of people not reaching this, because they're very slow or not even trying, but crying.
and start their own community events like pvp arena with fair play and if someone tries to kill the person the judges would gang up on that player, have events like work in a group to take down a troll because at that time the stat cap would be around let's say 300 and trolls from what I know a hella strong and so on.
Here, You live with your imagination but not reality, expecting a player base to take things in their hands. There are
some people ready to make community events but
many is not or too lazy for it, especially if there aren't interesting rewards like hats, tokens'n'stuff. Basically, You might want that, but it doesn't make everyone wanna do that. It matters much.
Until devs release another update increasing the stat cap by a bit, giving players another goal to achieve and so on.
No, I already gave You two reasons why this won't work. FIRST, because it forces devs to push content on weekly basis. We want them to work on our beloved game but not being slaves to it. Like the "another birb joke" was going around. TWO players who achieve ceiling, either fight for domination or quit because of boredom (Cryofall game current problem).
And if they progress fast they can always find other things to do, because there would be less things to worry about like crops or animals once they have reached the max current stat cap, they could pursue their other abimtions in the game, rather than being stuck having to always farm for infinite quality and get bored of the game.
First no, You still have to fed animals, secundo, it's hard to achieve ambitions if people quit after reaching "everything" and fighting for domination is much harder if You can't try and leave your enemies a step behind before confrontation. This doesn't change much if anything.
Sure quests and dungeons made it less tedius, but the infinite stat cap or just one single stat cap is no good either way. Either have increasing stat cap or remove it entirely.
We have no statcap and it's good. We need just balancing with broken FEPs so progression is much slower, but still there and relative enough.