I think I see where you're going with 0 isk payout with LP payouts... so you can farm isk in pubs and use it to battle in FW... however, I think you might wanna consider how negative people will be going in really good FW matches, its going to really hurt the desire to play it for most expect those who can get huge payouts from things like PC.

I would consider changing it a little. Reduce the payouts on FW by ~40% vs pubs but don't remove it altogether. This would still make pubs ideal for farming isk, while giving an incentive for people with too much isk to blow it on FW.

If you give 0 isk in FW, only the wealthy few can pay for it for any more than a few matches at a time.

I would also consider a 'winner's bonus' for LP. Something like +50% LP for winning the match.

The general idea is that if you are a hard core factional warfare player you grind up LP, buy things from the LP store, and then sell them to other players for ISK on the market. DUST doesn't have a secondary market for this implemented yet. This left us with a difficult choice to make. We could delay this feature until the secondary market is in; that would suck because we want to play this, and we're sure you guys want to as well. The second option was put this feature in but somehow balance it for there being no secondary market and then rebalance it again when the secondary market comes out. This would be bad as it means a lot of wasted development time. The third option was to balance it for the secondary market and just let you guys do your thing in the meantime. In the end, we settled on the third option. This does mean that people participating in factional contracts will make less ISK right now, but if they are hoarding loyalty points then they will have the potential to make lots of money when the secondary market comes along and they can sell FW gear to other players.