In its actual game design the game really punish death (you lost almost everything). If you are not in a good day you can die and loose many gears in a row.
For the survival games enthusiast it's mostly likely a good design, but it's really harsh for most of the players base. So to compensated the devs made the insurence system and adjusted the loot table and the economy in matter of weapons.
For me it's not even enought. Right now because they established a commercial strategy with influencers, they sale a good amount of copies.
But I think many buyers who bought the game, trie