Was raid for a long time until I took a step back and a deep breath and enjoyed a bit of life.

We tried a tier system, it was an catastrophic failure. Chances are someone in the top tier will always need what drops. Even more so now since a lot of the boss drops are for classes x, y, z, and sometimes q. When that top tier doesn't need it the second tier will snap it up. Leaving those at the bottom (i.e. those people you need to fill up the raid because you are 2 or 3 spots shy) hoping for scraps, never getting them, and leaving for a better home where they might get close enough to breath on an item instead of hope from afar (we had plenty of people leave due to this).

Zero dkp systems seems to have worked well for us, but we incorporated a devaluing element into it. When a dungeon is on farm status, the drops there are worth less. Those who paid more for it were usually the hardcore raiders who had more dkp to begin with (price of early adoption).

Upgrades always get first priority, then side-grades. Downgrades are not an issue. Just DE them for the mats.

It all rests on your group of raiders. If you have someone who has purple fever and needs that item simply because they want to have them, you need to address that problem. If you have people who will pass to others who need it more and pick up loot when it is appropriate and needed without hording dkp for that "one super extra ordinary drop that might some day happen", then that helps as well.

We have kicked around a loot council a few times, but we do not want to have cries of favoritism.

In the end it comes down to your raiders.

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