A lot of good points, Mazy and Anjovi.
I think the exchange of karma for experience makes sense. I'm wondering if it could be pushed further, as well.
For Instance, why have the ability to forge new gear etc contingent upon a byproduct of dueling, which appears to be the fastest way to accrue crystals, more so than other gameplay? Why pass out gold for gameplay aimed at more experienced players (league medals etc) when there is no real use for gold? Seems like things could be simplified a bit into fewer elements of the economy. For instance, maybe just 1, experience points or whtvr. everything costs a certain amount of experience: gear, forging, leveling, etc. and a player's budgeting of his/her points ends up as a reflection of priorities (ie: spending points on new gear on 1 hand immediately slows down your leveling opportunities but in the longrun will likely speed it up due to more wins/experience).
Likely better minds than mine have already thought through some of this, but the main point being the economy and social fabric are linked and both need some tweaking. I'd happily trade my 100k in gold for a chance at leveling up sooner.
There needs to be more fluency between the various currencies or a simplification as I've described that essentially allows the player's experience to manifest in whatever forms of upgrade are deemed desirable.