A compromise might be to boost the amount of rested state players get when they aren't logged into the game. This would allow people who don't have a lot of time to play a method of "catching up" faster w/o breaking it.
That would just animate the players to only play/level when they have rested xp, thus being logged out most of the time and decrease the online population even more. And population is going to be the biggest problem for the server since its 1x.
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