The implications of "Hearthlaw" and scents are cool. How scents work is pretty neat too, as well as outlaw and red-handed, even if they don't really impose much of a penalty on people.
So, I think we should expand that- and before people jump on it, I don't think committing crimes should punish people more mechanically, but rather allow others to 'get' back at them more, as well as allow certain players, villages and even realms to become 'villains' of a world.
Hence: "Villainy" and "Heroism"; or more aptly understood as a Karma system.
The idea is simple: If you commit more and more crimes (except trespassing), you slowly become more Villainous. On its own, this doesn't really do a whole lot. If you belong to a village or realm, you also contribute to that village or realm's Villainy score- which raises their villainy. Every day, you slowly gain or lose Villainy, depending on: The Villainy average score of everyone on your Kin list who isn't White or Red (this one might be abuseable with alts so maybe not really feasible), the Villainy of your village, and the Villainy of your realm. If you are neutral and belong to a primarily villainous village and realm, you will slowly become a villain yourself.
Villainy does not decay naturally, but is instead reversed by committing 'good' act; The only 'good' acts you can take are punishing villainous characters; committing crimes against villains still leaves a scent as normal, but rather than decrease your villainy, increases it.
Your Villainy score can be seen as a version of the belief slider from Legacy, save that you impact it with ingame actions, rather than deciding when to move them. If your villainy slider is closer to the negatives, you become closer to becomiong a 'hero', which interacts with villains and other heroes. This is the premise of villainy and heroism; a sliding scale that changes based off your actions against other players; doing nothing will leave you neutral, occasionally being rude might inch you towards a villain. Actively attacking villains in turn, will turn you into a hero. From there, we can add special effects that seem fitting- for example:
Characters who are more heroic might gain a bonus on their effective perc*int when tracking scents of those who are villains.
Characters who are more villainous might reduce the duration of Outlaw and Red-handed when committing crimes.
Neutral characters might be able to make 'calls for help' through some method that allows their location to be tracked similar to falling meteors, but only by heroic characters.
Visual differences for villainous vs heroic characters, or custom clothing that can only be worn if you are villainous or heroic enough.
Special skills unlocked at the extreme ends of either spectrum of villainy/heroism, such as a skill that allows a villain to renounce the Hearthlaw and become permanently outlawed/red-handed (can't teleport, ever) but gains an ability similar to the Legacy "call of the hird" ability that summons allies to your position. Likewise, an ability that allows a particularly good character to become a ranger and lose the ability to commit crimes against neutral/good characters, but committing crimes against evil characters never leaves scents.
Global bounties able to be placed on villains or heroes, with proper payouts that can be obtained through some hearthlaw-related system.