7 Ways to Award XP (And the Games They Create)
Reward structures shape behavior. RPGs are no different.
A while back I posted a short note as a reply to Just Another Dungeon Punk, it ended up getting a surprising amount of traction for a quick “comment”.
The note was simple: I just explained that the way the PCs gain XP shapes the entire game. But since it got a surprising amount of attention, I thought that this should probably be proper post. So here it is.
XP systems aren’t just bookkeeping.
They are one of the most powerful design levers in any RPG (physical or digital).
Because the way you reward experience points quietly determines what the game becomes about.
Let’s dig into why.
It’s Not Just a Game Thing, It’s a Human Thing
Humans optimize for rewards.
That’s not a game design principle. That’s basic psychology.
Whatever behavior you reward, you will get more of.
Companies reward salespeople with commission and suddenly everyone optimizes for closing deals.
Social media rewards outrage and suddenly outrage becomes the dominant form of content.
Games work the exact same way.
If your system awards XP for killing monsters, players will kill monsters.
Not sometimes.
Not occasionally.
Constantly.
Even if the story is about diplomacy, and the dungeon has secrets to uncover, and the wilderness is meant to be mysterious.
If the reward is tied to killing things, players will eventually start asking:
“Where are the monsters?”
The same principle applies in reverse.
If XP comes from treasure, players become treasure hunters.
If XP comes from exploration, players explore.
If XP comes from skill use, players actively engage with the world.
Your reward system quietly tells the players what the game is really about.
So if you want to run a short campaign about exploring a massive jungle in search of a lost temple and forgotten god, you probably shouldn’t award XP for killing monsters.
Otherwise your players will end up stuck on the riverbank farming alligators.
7 Ways to Award XP
Now lets take a look at 7 popular ways that RPGs reward XP, what play style they promote and some example games.
1. XP Per Monster Kill
Probably the most widely known system.
Every monster has an XP value. When the players defeat it, they gain that experience.
Simple and very easy to run.
Example
Clear a goblin cave, gain XP for each goblin defeated.
Games using this method
TTRPG: Dungeons & Dragons (modern editions)
Video game: Diablo
What it promotes
Combat. Players will actively seek out enemies because enemies equal progress.
2. XP Per Gold Piece
This was the classic system in early D&D.
XP is awarded based on treasure recovered, not monsters defeated.
This creates a completely different style of play.
Suddenly stealth, trickery, negotiation, and clever dungeon navigation become extremely valuable.
Example
Steal the idol from the temple, with or without waking the guardians.
Games using this method
TTRPG: Old School Essentials
Video game: Minecraft, not gold specifically, but progression is strictly treasure-driven.
What it promotes
Treasure hunting and clever problem solving.
3. XP Per Quest or Objective
Very common in video games and increasingly popular in tabletop campaigns.
Players gain XP for completing missions or achieving specific goals.
Combat becomes optional rather than mandatory.
Example
Escort a caravan safely through dangerous territory.
Games using this method
TTRPG: Pathfinder (Adventure Paths)
Video game: World of Warcraft (although it also awards XP per kill)
What it promotes
Goal-oriented play and structured adventures.
4. Milestone Leveling
In milestone systems, XP isn’t tracked at all.
The GM decides when characters level up, usually after major story events.
Example
The party defeats the necromancer and levels up.
Games using this method
TTRPG: D&D 5e (common table practice)
Video game: Final Fantasy XVI
What it promotes
Story-driven campaigns with less bookkeeping, but also much less player agency.
5. XP Per Exploration or Discovery
Here XP is awarded when players discover new places, secrets, or important lore.
This turns the world itself into the reward.
Example
Discovering a hidden ruin deep in the jungle grants XP.
Games using this method
TTRPG: Forbidden Lands
Video game: Skyrim (in the form of skill books hidden in the world)
What it promotes
Exploration and curiosity.
6. XP Per Skill Use
Characters gain XP when they use skills.
Sometimes only successful tests count.
Other games reward failed tests instead.
My own game Adventurous uses the latter approach.
In Adventurous, failed tests award XP.
This might sound strange at first, but it creates a very interesting dynamic.
Players are encouraged to act and engage with the world because action creates rolls and rolls create advancement. At the same time, failure carries real consequences.
So you’re incentivized to roll dice, but you also think twice before doing it.
This system also shifts the focus of the game toward participation.
Players who interact with the world more tend to roll more tests. Skilled GMs can balance this if some players are quieter and others more outspoken.
Example
Trying to climb a dangerous cliff, whether you succeed or fail.
Games using this method
TTRPG: Adventurous
Video game: The Elder Scrolls series
What it promotes
Active player participation and experimentation.
7. XP Per Session
One of the simplest systems.
Players gain a fixed amount of XP just for participating in a session.
Example
Everyone gains 100 XP at the end of the session, but can also gain additional bonuses if certain requirements are met.
Games using this method
TTRPG: Kal-Arath, by Castle Grief
Video game: Darkest Dungeon, heroes gain XP per completed expedition
What it promotes
Consistency and attendance rather than specific in-game behavior.
Summary
Below is a quick overview of the systems we’ve covered, the style of game they promote, and their main drawback.
Final Thoughts
XP systems are one of the most overlooked design choices in RPGs.
They seem mechanical, almost administrative. But in reality they shape player behavior more than almost anything else.
During the development of Adventurous (2019–2023) and later the solo rules Undaunted (2025), the solo expansion for Adventurous, I spent a lot of time thinking about this.
In both, XP is awarded on failed tests. That creates an interesting tension. You want to roll dice. But you also think twice, sometimes three times, before doing it.
That balance between incentive and risk turned out to be one of the most interesting design problems in the entire system.
And it all starts with a deceptively simple question:
What exactly should the game reward?
Very true!
I've been running Dragonbane recently, in which you don't even get XP. Instead, at the end of the session you have the _chance_ to level up any skill that you roled a critical (hit or miss) with during the session. The result is that the fighters don't only fight, the wizard doesn't only cast, etc. Combat isn't the default and is instead replaced by interacting with the world in interesting ways that use as many of the characters' skills as possible!
I must say though the incentives are also balanced against other factors. Certainly gold for XP can reward “stealth, trickery, negotiation, and clever dungeon navigation” but nobody (especially the DM) likes it when the thief goes solo (an inherent problem with that character class really) and I’ve never known a murder hobo that cared much for negotiation…