Right now, luck isn't tied to loot because it's too easy to game the system. You put on your luck gear, go into a level, force the loot to generate, and then take off your luck gear and put on something else.
What if we tied it to experience gain as follows?
- Every npc has a "player luck" value that is updated whenever it takes damage. The lowest value is kept.
- The player has a "loot luck" score that starts out at their luck. This is what's used to generate loot.
- Whenever the player gains experience from killing an npc, the player's current "loot luck" is averaged with the npc's "player luck", with the latter having a weight equal to the percentage of a level gained.