I propose a greater variety of punishments for the current Judiciary system with some methods being perhaps intense. These could range from humiliation to lethal punishments, instead of losing your character for an extended period of time, you could have shorter sentences with some permanent skill losses that you would have to regain (E.g. lose a couple levels of strength/endurance and have to level them back. In this case I believe skill gains should be increased back to what they were when you were leveling at these points in order to keep from having less and less skill gain when trying to recuperate losses.)
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Torture and Interrogation
The idea is that when you permanently lose your wanted status, you might be interrogated on later offenses (or perhaps even tortured depending on nations) in order to discover other possible offenses. Your characters ability to resist confessing is based on their toughness or endurance perhaps. Upon completion of your character's sentence you are off the hook for those crimes, and will not have your character caught and suffer an increased punishment for offenses already served. however, your characters history itself may worsen the sentence regardless of time served.(see Infamy)
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General Idea ranging in general order from least to greatest
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Minor crimes/ first offenses: theft,intrusion, escape attempts
-cell time
-stocks
-lashings/beatings (in stocks or posts?)
repeated offenders or people with accumulated minor offenses :
-set in a cage, exposed to the elements, while kept at minimal nutrition to serve time.
-slavery
-chop off a thief's arm! (for the eventual dismemberment system)
-Caged for life
Major crimes may include: Murder, banditry, and various acts depending on offended culture!:
-Caged for life
-witch burning (for Holy Nation lulz?)
-BRAND NEW! TORTURE STATION!
-Stoning(lethality dependent on character stats + number of people participating, death is uncertain)
-Bull dragging
-permanent bounties (Dead or alive?)
Most wanted/very big offenses
-Hanging
-Guillotine?
-harpoon/crossbow squad
-starvation
-chopping block
-witch burning (for Holy Nation lulz?)
-permanent bounties (Dead or alive?)
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Infamy
Just because your character served their time does not mean your character is not going to have a fair sentence in the future. If your character has a history of committing crimes their infamy level should rise. without causing certain crimes such as murder your infamy level perhaps will not rise to an executable level, and conversely just because you murdered someone does not guarantee a death sentence(perhaps likely though?) The idea of character history is that it is something that is extremely difficult to remove and perhaps impossible.
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Avoiding the law
other than avoiding being caught, you can get a face change at a plastic surgeon completely removing your ability to be recognized(the more infamous you are the more you are going to be charged) and only through interrogation or other circumstance like perhaps witnesses revealing your true person, your crimes, and with it your infamy. So you can retire from a life of crime, and be unsuspected by the law... if you can keep your grubby hands off the shiny armor in the barracks...