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The one issue I really see with having a straight cutoff of badges from one tier to another, is what happens if you're saving up for an item and your guide drops that tier out of their raid schedule. All of a sudden a bunch of people have leftover badges that are utterly useless and likely to stay that way. Kind of like heroic badges were for some people till new items were added or the conversion to nethers and gems existed. I like the suggestions folks are making about allowing you to convert them into non gear items though, that's a good way to allow people to make use of their extras.
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