The Broken Hourglass - Levels Explained @ Official Site
The Broken Hourglass site has an explanation of the leveling system. Here's the intro they sent over:
In this week's Broken Hourglass game update, we explore the concept of level paths. Because point-buy systems can be intimidating, we provide a hybrid point-buy and class template system, which allows players to have the bulk of their experience points automatically spent along sensible class or occupationally-focused lines, while still leaving a reserve pool to preserve the flexibility of a point-buy system.
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