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Upon reaching level 58 on Kallisti, players have the option to create a bloodline. When doing so, a new character is created that is linked to the existing one. The new character will start with 50% the normal hits and mana and a +1 bonus to all stats (but not maxstats). The descendent can be of any class and race and changes are free (see reclass and Adventurer's Guild). Descendents also get +1 maxstat metas for each generation after the ancestor, up to a maximmum benefit of +5.
The ancestors also receive benefits. Each time the descendent gains a level, the ancestor will gain some hit, mana, and or stamina as well - regardless if the ancestor is online or not. Bonus HMS is accumulated and ultimately granted to the ancestory when the bloodline attains level 50 and immediately for each level thereafter. In addition, the ancestor will gain nobility points for every bloodline that reaches level 50.
Each character can only start two bloodlines but descendents can branch out creating 2 more bloodlines and extend the lineage infinitely. If your bloodlines attain 58th level, they can start their own bloodlines which will be "grand bloodlines" of the original ancestor. For every two of the grand-bloodlines or great-grand-bloodlines (etc.) that reach 50th level, the original ancestor receives additional HMS. For every 2 generations starting at 4, the level that you are required to reach goes up by 1. i.e. for generation 5 you need to be level 59 to make a new blood, generation 7 it is 60, etc.
This is a great option for players which will allow them to create a new character while continuing to improve their original character. It also encourages them to help new players if they choose to give one of their bloodlines away so that the family tree expands more rapidly. A bloodline's heritage will show up on the score screen.