Experience points are not altogether necessary; our lovely taskmaster system increases skills with use and practice. However, experience is still handy for advancing skills that aren't used very often. When you do certain things, you get experience points (or xp for short). When you join a guild, you can go to a special room in your guild and advance your skills, which help you fight/steal/cast/pray better. The more xp you spend, the better you get at something.
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