I am completely unsure about this.
One of the big reasons of low population is hardcore rules.
One of the big reasons for hardcore player to come here is hardcore rules.
Why not to make it uncontradicting each other?
Simple as it is:
a) Character with maximum stat/skill <= 50 loses 10-20% of his progress (this is an early starter. Frustrating him would make him leave)
b) character with maximum of <=100 loses 40-50% of progress (this is normally a midway player. He is used to game, maybe bound by its charm already)
c) character with maximum <=150 loses 70-80% Most of casuals get here for a looong looong time. Or even get bored before getting here and quit anyway. This is like it is with current 30% inheritance
d) Char with stat over 150 loose everyting with no base inheritance. And get 30% back after proper burial.
(Numbers may be 75/150/250 depending on population analysis)
Burial rituals still apply but only to the portion of stat/lp which is lost.
So if newbie loses 20% he can recover by burial ritual 30% of this 20%. So best case he loses just 14% of his progress (+ items and base of course).
Yes - this is unfair to high-level players. But c'mon - high level players have bot farms, brickwalls, backup bases and secret stashes of goods. And the solid balls to keep playing. While casual '1-day-a-week' players have nothing.
So while impact is different, overall frustration level is the same.
Also - this has to be clearly stated with big red letters before a newbie character dies. In the creation room or on the death screen.
They know nothing about inheritance, they are scared by 'permadeath game' title. so they don't even try to inherit a char, just rage quit.