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It is not a necessary evil. We uphold the letter of the DIKU license as well as the expressed intent of the DIKU team regarding how they wish it to work. We cover our expenses with voluntary donations and/or the purchase of out-of-game merchandise.
I think you're correct in saying that you shouldn't be tarred with the same brush as Medievia, because you're working with Hans and acknowledging the team's contributions as you do so. <moderator edited stuff out here.>
It's a respectful way to manage the transition from a DIKU-base game to one that will allow you to continue operating as a pay-for-perks game. But no one forced your hand to take things in that direction-- other solutions exist, and it's disingenuous to say it was "necessary".
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