Dying in the game is not serious at all. You can lose a battle, use a potion and try again. This doesn't give any thrill while fighting.
If we win we get loots so it's only fair that monsters get our equipment if we lose.
IDEA - first implement simple changes like if you lose a battle It will notify you "you lost a random equipped equipment (name) , defeat the monster to get it back" the monster will have the stats of the equipment.
It will be more fun if the equipment/effect stays with monster while other players battle too. Just limit it to which monster can steal how much Higher equipment so that higher level players don't make low level monsters intentionally tough.
