has outlined its preliminary goals for death and death penalties in its TUG
sandbox MMO. The devs are aiming at something that's prickly enough to discourage players from using it as ad-hoc transportation between spawn points and yet forgiving enough to avoid frustration.
In a nutshell, your avatar's soul will vacate his body upon death, and it will do so in the form of a wisp. Wisps will gradually regain enough energy to reenter the avatar and awaken it, and doing so necessitates progressing through four distinct phases. Reviving your avatar in its optimal state is thus dependent on timing, and the importance of reviving in a weak state vs. a fully recovered state will vary depending on your chosen game mode.
Nerd Kingdom is enabling corpse-looting in TUG's
survival mode, but the devs are also intent on designing plenty of camping deterrents into the system. You can read all about these, as well as the rest of the death mechanics on the TUG
Kickstarter project page.