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this is how i think defiance could work....
de·fi·ance n. 3. A new auto-power given to all City of Heroes Blasters in Issue 5.
instead of when our health stays low...why not make it for damage taken over a period of time?
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I like this idea, the harder you get hit, the harder you want to try and hit back. Maybe as a Martial Arts power, "Damage Polarity Reversal"

Ha...
I managed to get in to Defiance range a few times on test. In the Outbreak map, where it wasn't easy to get to that much damage, but once I got there, there wasn't much risk. Also, in some CoT mission, where if I managed to hit defiance range, I was dead before I could get off any of my attacks. Seems that there's not much middle ground, where it's still risky to be Defiant, but not suicidal.
I don't think I've ever seen an MMO where the damage you dealt depended on how hard you got hit (how often, yes, how hard, no), but it seems to me to make sense in the Hero area.
However, I think I'd rather that be a power you could use, instead of an "all blasters get this". Maybe in the electrical secondary.
Oh, and yes, my main is an AR/elec, level 11.