I hang to the left so I hope my 'beast' in game has left sided strength...In the eastern kingdoms death is a normal corpse run similar to WoW.
In the western night, a death means Permadeath. Sorta.
You have 8 gear slots. Almost all your abilities except the most basic (melee attack, kick, gate) come from gear that grants then (8 max). When you die, you become a beast until you collect 8 souls from other players. When you kill them, you may loot 1 of their items. Then you respawn At your starting city with 8 new abilities. Your banked items are untouched
Also, you are asymmetrically powerful when you are a beast
Seriously, your game idea sounds really awesome. I'd play it