[fowlplay4]

Basing it purely on a ratio is a terrible idea and putting an even further penalty on death will only have negative reactions.

Your "solution" will just lead to "rich get richer, poor gets poorer" situations.

The flat reward that was suggested earlier is really the only good thing you can do. Instead of a flat reward of 5 it could be like Max HP divided by 15 so you earn more off targets with higher HP.