WHAT IS EPGP??
EPGP is a relational DKP system. Whereas traditional DKP systems utilize a single pool of points (earned - spent = current), EPGP utilizes two pools: Effort Points (EP) and Gear Points (GP). EP quantifies the effort each member put towards the common guild goals and are earned like points in any DKP system, being on-time for raids, killing bosses, etc. GP quantifies what each member received for their effort and are accumulated simply by receiving loot; each item has a GP value calculated from its item level, rarity and equipped slot. The quotient of EP/GP is one's Priority Rank (PR). A member's PR, and chance to receive loot, is thus directly proportional to the effort put in and inversely proportional to the loot received. Whether a member has a PR value of 2 or 2,000 is irrelevant, it is a member's PR value in relation to that of everyone else which is important. Ranking members descending by PR produces a quasi round-robin list; those at the top of the list receive loot before those at the bottom.

The EPGP system is managed in-game through the EPGP addon found here.

Members are encouraged, but not required, to install the addon. It adds the GP value of items to tooltips and allows for easy viewing, sorting and searching of the PR list. The PR list is posted to the Loot/Karma section on a weekly basis.

EPGP details
Everyone begins with 0 EP and 0 GP.  A minimum of 1000 EP is needed to compete for loot on a NEED basis. Members with less than 1000 EP are eligible and encouraged to bid on loot, but will not win over anyone with more than 1000 EP, regardless PR.

EP and GP depreciate at a weekly 10% rate. Since both values are reduced by the same percentage, PR is unaffected.

We appreciate alts that have been leveled to help in the guild, and want you to have the 
opportunity to gear up these alts. Therefore, alts and mains will have different EP and GP pools.  Because of this, it is important to officially declare which character is your main. Mains will have first choice of getting in for raids; alts will be used on a need-only basis.  Unofficial “Alt-Runs” during off week are common however, and are not subject to EPGP, so there are often opportunities to play / gear up alts outside of official raids. 

EP values
10 EP per wk = Updating Karma *
10 EP per wk = Updating Website * 
10 EP per wk = Managing vent server *
On-time bonus = 10 EP
Sit-out bonus = 10 EP **
New boss attempt (never killed by guild) = 25 EP per attempt
New boss kill = 250 EP
Non-farm boss attempt = 10
Non-farm boss kill =  100 EP
Farm boss kill (killed more than 5 times by guild) = 50 EP
Every 30 min in raid (Farm)= 5 EP
Every 30 min in raid (Non-Farm)= 10

*  These are jobs that take time above and beyond the typical responsibility.  On top of that the vent and the website cost money.  Thanks Ori, Apo, and Werf.

**  If you have signed up and are at the instance ready to go, but asked to sit out or the raid is already full you will still receive EP for being ontime and an additional 10 EP for sitting out.  This also applies for sitting out to help out a guildy who needs loot from a specific boss. You will also receive 50% of the EP for bosses downed while you are sitting out.   It is understood that if you are sitting out in order to receive your EP, you need to be on vent, in the raid, and have your character parked outside the instance.  (You may play an alt if you like)

Tardiness
During raids we give breaks. When it is time to return it is expected that everyone is ready and focus to continue. If you return from an AFK late or go AFK during the raid you will be deducted 5 EP per min you are gone. So, if you are gone 5 min you will lose 25 EP.  Yes things come up, but you're holding up 24 other people, to prevent yourself from losing EP you can always sub out.  If you are AFK for more than 8 min (half way between the two popular votes of 5 and 10 min by the guild poll) then you will automatically be subbed out and will lose an additional 10 EP resulting in a 50 EP loss total.

SUNS (Sign-up, No show)
Big no-no = BIG PUNISHMENT.  If you sign and don't show, you are potentially letting 24 people down. Real life does happen so there will be some exception: So..... You can't make it to raid, you have signed up and ...
Let an THE RAID LEADER know BEFORE RAID: -0 EP
You Let an officer know within 48 hrs of the raid: Your points will be deducted at the time of raid and credited back based on that officer's discretion.
No one knows what happened to you: You lose 25% of your EP points.  
Note: Officers are decent people if you have a specific circumstance and talk to them about it (ex. You had an emergency that kept you offline for more than 48 hrs) This section should not worry anyone.  All we ask is that if you commit to a raid you show up, and if you can't be there you let us know.  

GP values
The EPGP addon adds the GP value to the tooltip of all equippable items.
All limited-drop non-equippables are equal to the GP value of the equippable they produce or purchase.

Patterns
Tradeskill patterns that are themselves Bind-on-Equip (regardless of whether the item they will craft is BoE or BoP) are property of the guild. The Master Looter will collect them and put them in the Guild Vault for distribution using the normal Vault Karma system.
Tradeskill patterns that are themselves Bind-on-Pickup (regardless of whether the item they will craft is BoE or BoP) have no GP value.  They will be awarded to the crafter with the highest EP. 
Tradeskill patterns that are themselves Bind-on-Pickup AS WELL AS create a BoP item will be worth the amount of GP that the crafted item is worth.

Vanity Items
Vanity items, such as rare-drop mounts, will be distributed via /random.  They do nothing for raid progression and therefore will not be distributed through the effort based loot system.  

Bidding
When an item drops, the Master Looter will link the item and ask those interested to send tells "NEED" or "GREED %".  GREED bids start at 50% and increase in 10% increments. Loot is awarded to those that bid NEED, based on PR, and costs the full GP amount. Otherwise, loot is awarded to the member who bid the highest GREED percentage and costs that percentage of GP (ie if the item is 259 GP and the winner bid 50%, the winner incurs 130 GP). If two or more GREED bidders tie, the item is awarded to the bidder with the highest PR. If the bidders' PR amount is equal, the bidders /random 100. If the Master Looter receives no bids within two minutes, the item is disenchanted.http://code.google.com/p/epgp/downloads/listshapeimage_2_link_0

we use the epgp system