Amazon Game Studios announced a set of improvements for New World, including more incentives to turn your PvP flag on.
New World players often refrain from enabling the PvP-flag as they are not keen on risking their money and resources on repairs that happen after dying and being a PvP volunteer certainly increases the chance of that happening. As it currently stands, the players merely get a 10 per cent XP increase while they are flagged for PvP, which is not enough to compensate for the increased risk of damaging equipment, both on the character and in their inventory.
AGS acknowledged this issue in a forum post and provided a brief overview of the quality of life changes that are coming to the game with a future update.
First, there are short-term changes that are easy to implement and should mitigate the problem. Players with PvP-flag on will also get increased luck, which will serve to encourage engaging in PvP at level 60, where the additional experience gain didn't have any benefit. On top of that, the aforementioned damage to equipment will be mitigated so the repairs will not be mandatory as often.
In a slightly later future, the enabled flag will grant max-level players an alternative way to increase the dreaded watermark as player kills will somehow move the system forward. Details of this change have not been revealed but it certainly sounds good after all that grind in Elite zones.
Finally, the long term changes will include a new open world activity that will only take PvP-flagged players. It will contain rewards of its own and promote smaller-scale engagements across the world, essentially bringing the PvP enthusiasts into the same place.