To begin with, I would like to praise this post! I think this is a wonderful idea - but it does have a few downfalls. Unfortunately, HavocMC does have a few immature players who will try and get anything that they can from anyone. If one of these players dies legitimately, they will likely post #Redistribute in chat to get money and gear even though they didn't die to a hacker. Some of these people will even spam you (asking for more gear and money) if you happen to be one of the lovely people willing to repay them. The overall idea of this is great though, because some players get upset when they die to a hacker and insist that staff members repay them, knowing full well that there isn't anything we can do about it unless we have evidence. Even then, we usually don't reimburse the player because most staff ranks would have to use their own personal gear to give to the player - and as we don't have any special perks, we find it just as hard to find gear as everyone else does. Sometimes it's just something impossible to do.
In response to some of the other player's comments, IP-banning wouldn't really give the best results. IP-banning obviously only blocks that particular IP. If the hackers realise that they have been IP-banned, then they might go to the trouble of using an IP-scrambler or similar programs. There is no way that we could keep track of that (that I know of), so it would make finding hackers impossible. If we continue to just ban players while they use the same IP, it is much easier to track them and enforce their deserving ban. If we were to IP-ban, I think that there would be an increase in the amount of hackers which is clearly not what you want. Just a little food for thought. Once again, great idea and relatively well thought out! It is very positive and I love your way of thinking. c: