Add a quest or two, that reset once per day. Talk to an npc, get a kill count quest and upon completion you get points.
Points are collected for armor and weapons.
I am pretty much all for anything that promotes more NPC interaction and thus furthers immersion. This even sometimes includes mundane tasks.
Unfortunately, there is a fairly large group around here that turn into a torch bearing, angry mob ready to besiege you in your castle for the demon spawn that you are when any suggestion threatens to step beyond the confines of a general definition of the Survival genre and, God forbid, even remotely hints at a concept that may have been used in an MMO at some point.
It does not matter that you are a misunderstood monster, nor even that you actually saved that little girl from certain harm.
(By the way, just a thinly veiled (or completely unveiled?) message, the taste of which is just as poor as the attempt at wit and humor, but absolutely in no way meant to discourage the posting of great ideas!)
Mh…
Actually I’m kind of traumatized of “having” to deal with daily quests for some felt eternity.
And while I can only guess that I am not alone with that feeling, I would like to provide another idea, more or less similar to yours. So if you prefer daily quests. Fine by me. Just dont expect me to like it. 
Instead of having a daily appointment, I would prefer to be encouraged hunting dangerous enemies down.
Whenever I feel like doing so - for how long and as often as I want to.
One idea would be some hunting cabin with another pack of neutral NPCs.
It would include some bountyboard, telling about dangerous prey, and of course those who will reward the players for heads of hunted down enemies/bosses.
Those heads would grant tokens - I would think of coins made from ivory - which can then be used to buy stuff like you - spindle - suggested. Aside of some actual fighting armor, maybe all those different racial clothing as well? (Speaking of zamorian dancer outfit and similar.)
As passive, defensive and some bluntly put lowlife agressive enemies arent worth to be put on some bountyboard, their heads should be rewarded with silver coins. (1 head = 1 coin)
While agressive wildlife with more than 500 HP might grant gold coins. (1 head = 1 coin)
Then again maybe 10 heads of harder agressive creatures (1k HP+) might grant one ivory coin.
Some key-keeper-head could be exchanged for 3 coins.
While worldboss heads and dungeon boss heads are rewarded with 5 coins.
That being said, this armor should not become a new tier, but rather be a variant just like legion armor - granting +3 on 5 stats just as well, but being a different armor class. Most likely medium armor?
As that armor would be on par with the currently best armor (regarding statpoints) those pieces should each cost 8/13 coins. (Head, gloves, boots ->8; chest+trousers -> 13)
As for weapons…
~50 coins could give one the ability to choose one legendary instead of hoping on luck.
While 10 coins would be used to buy early high grade weapons. (On par with flawless starmetal.)
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