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This issue already sort of exists, depending on the level you're raiding at.
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Indeed kara will have this problem already as with 25 badges each per run the value of the badges could be considered worth more than the dropped loot given the quality of badge bought gear. Thus Kara is about as close to the "badge only" system that you can get at the moment.
However previously when bosses only dropped gear you could award dkp so that those sitting out can catch up by being able to afford more loot in the future, potentially being able to buy multiple pieces on the nights they are allowed to raid. Whereas a full badge system offers no options to allow members who are told to sitout often to catch up.
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Consider if Sunfire Robe was a drop from say M'uru, but you could also craft the same Sunfire Robe from tailoring (375 Required to wear) provided you had the pattern and enough 'Sunmotes' to do so.
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Another system like this would be to not have the pattern require a tradeskill but essentially be a "key" plus "badges" to get an item.
Each boss would essentially drop a key for everyone in the raid which would "unlock" a "chest" near the boss, at which point you would get a vendor window that allows you to buy items from the loot table of that particular boss for badges.
Quotations were used to allow for lore changes in names. For instance if your looting a chest to buy gear, the "badges" could be in the form of runes that you would have to apply in order to decurse the items inside in order to retrieve them (anything can be explained with lore).
I mention the tokens changed to keys so that you wouldn't have tons of tokens hogging your inventory (you could even have single keys that upgrade as you progress similair to the frostwolf insignia to avoid keyring clutter). The keys could of course have other uses to get access to the loot other than a chest.
This would get around the randomness of the RNG while at the same time providing a real reward for progress. Admittedly this makes selling raid spots much more profitable however since you can guarantee loot to whoever has enough badges that you bring (less so if you use a tiered badge system however).