I should have been more specific, I just tend towards more words than ever needed. The fail to gain points to win later is the totality of the entire game, including physical, political, strategic fails and successes, not simply a social system. By social, I mean the 'MU' part of MU*, how players interact to tell stories and RP. Its similar to traditional diceless/systemless Comic Mu*s, everyone takes turns winning.
The system is intended as generic, suitable to multiple themes/genres. If others snag it for social only, that's fine, its in its infancy at the moment. This was my concern, I see it utilized for any situation and conflict; and not just social conflict. The other I was talking to only sees its utility for social fluff.
The system limits the level of fail to one static max, the max level of success depends on, simply enough, a couple numbers set during character generation. The balance between fail:success is standard or 1 point of success is equivalent to 1 point of fail in terms of scope, just bigger wins can be bought especially by groups of individuals (which plays back into faction/group conflicts and the necessity of spending points for wins).
I'll try to nutshell the overall system while trying to capitalize on space here (the basic system, not the more elaborate one I'm pondering as a MUSH mechanical system, for space purposes).
CG: players decide on two descriptive words for their character (dashing prince, daring rebel, lonesome pilot, zealot priest, reluctant scientist, etc. etc.). They have 7 points to distribute between these two words; dashing (3), prince (4).
Basis of play: if a player can apply one of their descriptive words to a situation, they gain 1 success. The Dashing Prince needs to incite the people to pay more taxes, he is rather Dashing and capable of convincing folks to pay a little more now for a tax break later. The story continues. How do they determine if it applies, they ask the other players in the scene; which is done on most places anyways, RP is going on, someone oocly asks 'hey, think I can roll X skill to see if I get anything from the Librarian' and consensus is reached somehow.
The numbers behind the words. The players need to gain points they can spend, the number represents the limit of additional successes. The Dashing Prince can easily get more taxes, but what about asking for more food to prepare for a coming siege, that might need 2 successes. Convince more to join the militia, 3 successes. Or convince that the first born son of every family should enter service, maybe that's 4 successes (the max they can buy, 1 auto success, plus 3 more points for having put 3 as the number of dashing the prince had in CG).
How to gain points: Take a loss somehow. To gain some points, the Dashing Prince decides to fail at keeping the Merchants Guild in check. They want import tax relief, and argue that less tax on import will bring more merchants, which will bring more spenders to get goods in the city, which leads to increase on taxable merchandise, so it ends up gaining more money for the city. Its decided this is a 2 point loss, because others will see him as being lenient on the causes he stands on somehow, so broader affect then a 1 point fail. He has automatic 1 success as prince. 0 is just a basic fail, no one notices, this drops to -1, a noticeable failure. The effect lingers a bit for RP purposes, but the Prince gained 2 points to spend later.
Direct conflict (PvP etc.); the Dashing Prince is at the feast, and wants to dance with the Lovely Duchess. But wait, the Daring Rebel is also after the Duchess. Instead of talking out this issue, they draw swords (Dashing vs Daring). Daring Rebel has no points, but succeeds in looking all daring and no one is cut by his sword on the sidelines. The Prince decided to burn his two points, so he has 3 successes, he probably jumps up on the feast table, kicks the turkey at the Rebel, swings from the chandelier and wins the duel.
Caveat: the 'loser' of any conflict decides the outcome of the fail to the winners satisfaction (the good form Jack, so the loser isn't disgraced or compromised on the issue). Secondary to this, taking the loss outright instead of trying to spend points is just an exchange, the Rebel gains 2 points spent by the Prince for use later (for his Daring escape from the prison guards probably). If they both spend points, the loser only gains the difference, the other points are eaten up.
Points potential. The primary means of gaining is failing now to win later. A secondary way is taking the loan now and failing later. The Rebel could of decided to take a loan, to have three points to spend to assure a win, and take the Duchess with him as he swings out of the window via the tapestry there. This earns a Mark though. Anyone who sees a Mark can 'force a fail', the Mark is visible. The limit to gaining points is the max fail is -3 (or 4 points gained) or the lowest CG word used (so making the (6)/(1) char has potential, but the 1 is a limit to other aspects of the system). Once the fail is forces, the Mark is removed and they can take out a loan again, but not while they are Marked
Groups and teams can join to spend points; Two politicians running for office, highest wins. Players vote by spending points and RP'ing support; the union boss spends his union points to convince others in the union to vote for Joe, the heroic police-chief spends points based on his heroics to recommend Valerie gets it. After a set time or whatever, the highest tally of points contributed succeeds. Or group joint effort, The Adventuring Party of Mr. Pink fights the dragon and needs 10 points, the fighter fights (max of 3), the wizard spells (max of 4), the healer supports with heals (max of 2), and the thief sets a trap to trip the dragon (max of 3), they have enough points between them to defeat the dragon.
Its simple, the MU* version I'm pondering includes environmental points for players to PrP with or offer challenges and scenarios as one-shots so that points trickle to the players, for them to spend on other situations or conflicts. The overall balance is limit on points that can be stored from fails, as well as keeping some system of challenges or group conflicts to face so that points are spent, not just accumulated. Also, the other limit is the OOC social aspect of RP'ing to get into situations to gain, spend or trade points and convincing others to 'give' points when there is faction/team based conflict (Diplomacy-like)
Sorry if I'm too verbose there.
Edit for spelling, grammar and to make some sense.