Challenges

Overview
Challenges are quests that can be repeated many times over to gain collectible type objects, these objects are then used to purchase and upgrade items from Challenge Traders. They are also unique in that you are always given a "score" which has no easy to hit fixed limit. Turbine has hinted at possibly adding leader boards to compete for the highest score in challenges.

Update 12 contains 4 new dungeons. These 4 dungeons are separated into 12 challenges with different rewards available. 9 of these challenges have a separate "Epic" variation available (see below), for a total of 21 separate variations across 4 dungeons.

Challenge Tokens
Challenge Tokens are used to access individual Challenges one time. Challenge Tokens are not required for VIP's or players who purchase the pack to gain access to the Challenges. They have unrestricted access to any challenge at any time.

Free Daily Challenge Token (Free/Premium & VIP)

 * You can get tokens for each of your characters, once a day by talking to the token vendor NPC Kariya in House Cannith.
 * On each server, the first of your characters each day that requests a token gets:
 * 3 tokens if you are Free to Play (and have not gone Premium).
 * 5 tokens if you are Premium or VIP.
 * After the first of your characters on that server gets the 3 or 5 free tokens, all of the rest of your characters that request a token get 1.
 * This resets each day at 0:01 UTC (7:01 PM EST), after which the challenge being given out changes and the first of your characters to request will get the bonus tokens.
 * These Tokens can also be used in the appropriate challenge to purchase items from Supply Vaults located inside the quest, to gain various benefits.
 * You can access the Epic Challenges with Free Daily Challenge Tokens.

Universal Access Token (available in the DDO Store for TP)

 * The Universal Tokens can be used for any challenge and are not restricted. They can be traded to other players freely.
 * These Tokens can also be used in any challenge to purchase items from Supply Vaults.

"Daily menu" mechanic
Free tokens players receive from Kariya are not random, and will change every day according to the server clock. This, kind of, works as "daily menu" mechanic and fills the gap between VIPs/pack owners and others, to some extent. e.g.: A player puts LFM up for the "daily menu" challenge, VIPs and pack owners can join and use free token(s) for in-quest benefits. Free to Play players can also join and use a free token to gain access to the challenge.

Scores
Typically, scores are determined by numbers of kills, resources gathered (Dragonshards and such) and some other things; this will vary from challenge to challenge. Check each individual challenge for an exact list of what affects score. Star ranking never directly affects your score (though sometimes they are mutual goals). The Score is scaled 10% per level difference of the challenges CR versus the maximum level party member in the instance. E.G.: A level 20 group running a level 25 challenge gets a +50% bonus for each point they gain, so if a monster kill grants one point, they will instead get 1.5 points. Fractional scores will not be showed, but do count.

Your score determines how many reward items you will receive once the challenge is successfully completed.

Star ranking
You get 1 Favor point for each star, and 1 additional Favor point if you achieve all 5 stars and run the challenge at its maximum available CR, for a total of 6 Favor possible per challenge. (With 21 challenges, this is a total possible Favor of 126.)

Stars are awarded only if the main objective of challenge is completed successfully, and are not awarded progressively. To get all 5 stars, you must complete all 5 objectives during a single instance.

Stars also reward a large amount of bonus XP, this bonus XP is much larger the first each star # is achieved. See the XP section for a detailed explanation on how this works.

XP
Challenges reward a certain amount of base experience; this experience scales at a fixed rate per CR level. Bonus XP for stars achieved:
 * EG: Kobold Chaos base XP reward is 150 per CR, thus the CR4 version rewards 600 base XP, and the CR15 version rewards 2,350 base XP.

Each star you achieve - in terms of star number 2, 3, 4 or 5 - rewards a large amount of one-time only bonus experience, generally around +150% for star 2, +200% for star 3, +225% for star 4, +250% for star 5, and if you ran the challenge on the maximum CR, +300% for the bonus star 6 you can earn.

Which objective you complete isn't what's important, but rather it's how many stars you achieve. Meaning you can complete the first - required - star objective, plus any other one run, and that run counts as 2 stars. In another run if you complete the main objective and a different star, that will count the same and not reward you further, as you already achieved the bonus experience for star one and star two.

Some further examples to clarify:
 * Objectives 1, 2, and 3 are achieved in a single run. You will gain the base experience, bonus XP for star 1, star 2 and star 3.
 * Objectives 1, 4, and 5 are achieved in the following run. You will gain the base experience, but no Bonus XP would be awarded.
 * Objectives 1, 2, 4, and 5 are achieved in a following run. You will gain base experience, and Bonus XP would be awarded for 1 star. (the fourth star earned).

In addition to this huge first time bonus, repeated stars also reward experience, generally around 800-950 XP per star, regardless of which star. This varies based on the level and length of the challenge.

Random loot
No chests can be found in challenge instances. Instead, Supply Crates are awarded for each boss kill (What qualifies as a boss varies from challenge to challenge). These go straight into your inventory and can then be double-clicked (either inside or outside the quest; it's generally better to wait until after completion) to generate level-appropriate (for the crate, not the player) random-gen loot. The supply crates have a minimum level, so it's possible, if you go into above-level quests, to get ones you can't open. You can get a range of crates from the same challenge.

Note: There seems to be a serious  that can destroy your existing items such as ingredient bags, when you have too many of these crates on your overflow inventory slot. Link

Level range and penalty
Individual instances scale the number of enemies at an increasing pace with each player added. Hirelings/Summons/Pets do not seem to trigger this type of scaling. Large parties of players will encounter more enemies than solo or small parties. This scaling is in addition to the standard Dungeon Scaling present in all challenges (even the epic ones).

Epic challenges
Level 21-25 version challenges are considered "Epic"; however this is in name only, as they do not actually set the dungeons to Epic Difficulty. E.g.: You will not encounter monsters with Epic Ward, as greatly increased trap damage, as greatly increased monster damage, or really anything resembling other epic quests. The main differences are the main objective sometimes has a increased requirement to win, and the enemies have significantly more hit points and deathblock.

Challenge Leaderboards

 * http://my.ddo.com/leaderboard/challenges/

It is recorded per server and per challenge. Epic versions are recorded separately. Ranking is determined by star ranking first, then by actual score point. The data is drawn from MyDDO. This means it will list your character on the leader board however it currently displays in MyDDO.

FAQ posted by Cordovan: http://forums.ddo.com/showthread.php?&postid=4227742#post4227742

List of Challenges

 * Vaults of the Artificers

Unique loot from the challenges
All items are obtained from the new Challenges using the new Barter UI in House Cannith.


 * Mournlode Weapons (Anti-Undead)
 * Calomel Weapons (Anti-Red Dragon)
 * Cannith Elemental Weapons
 * Frozen Tunic (Outfit)
 * Mournlode Armors (light, medium, heavy, and docent)
 * Ring of Master Artifice
 * Ring of the Stalker
 * Spare Hand (Belt)
 * Blasting Chime (Trinket)
 * Bracers of Wind
 * Cloak of Flames
 * Rock Boots
 * Wand Bracelet (Removed before Update 12 was released)

A complete list is available.

Comparison to the Treasure of Crystal Cove
Challenges are the next step in the technology the Treasure of Crystal Cove introduced to the game, which ended up being a very popular special quest with very nice rewards for those willing to spend time during the event.

Challenges are different in many ways from the Crystal Cove:
 * They all have 5 unique objectives, while Crystal Cove only had one
 * They reward favor based on how many of those objectives you complete; Crystal Cove did not reward any favor
 * The enemies contained within can reward guild renown. Crystal Cove had no renown.
 * There are no special server-wide restriction on unlocking challenges; they may be played at any time like a regular quest.
 * Crystal Cove was free to play; the challenges offer an adventure pack for unlimited access, and are free to VIP. Premium & F2P players who haven't purchased the pack can talk to a special NPC near the Challenge vendors (Kariya ir'Vannis), who will reward players with tokens for a specific daily challenge (which changes every day at 00:01 UT, or 7:01 PM Eastern Standard Time).
 * The tokens can be both used to unlock challenges without the pack, and within the challenge itself to unlock special bonuses unique to that challenge.
 * VIP/Premium players will receive 5 tokens for their first character per server, while F2P players will receive 3. Each character after the first will receive 1 token.
 * Each item requires you to complete a variety of 2-3 challenges to get enough ingredients to create it. Crystal Cove was completely self contained.
 * Failure results in accumulating nothing towards a buy-in; in Crystal Cove, characters retained all Gems they gathered during a failed run, though no shards were rewarded.
 * Crystal Cove had no loot within the Cove itself (although treasure chests could be found around Smuggler's Rest); Challenges reward every player in a group with Bound to Character, non-bankable Supply Chests, which appear in the inventory and can be opened outside of the quest - or held for later - for killing red-named monsters.

Similarities to Crystal Cove:
 * Collect ingredients, and later use those ingredients in a barter UI to create items. The amount of ingredients you get is extremely variable. Crystal Cove had a limit of 300, while Challenges seem to have no fixed limits, other than how well the players can do.
 * No difficulty settings. Various level options are available, but they are all essentially normal difficulty in terms of unique difficulty effects such as dungeon scale is concerned. However, unlike the Cove, most challenges are also offered in separate Epic-Only variations.
 * XP penalties for being over level are similar. However, Crystal Cove had a fixed limit of +/- 5 levels to be awarded ingredients/XP, while the challenges have no hard limits. Being even a single level above the chosen Challenge seems to result in a more severe penalty regarding ingredients than it did in Crystal Cove.
 * You can get special bound to character loot you can take outside of the quest and use in other challenges. Crystal Cove had requisition forms which could help you on further runs. Kobold Island drops universal crests, which may help you on further runs of Dr. Rushmore's Mansion.

External link

 * Official developer diary
 * Official guide and rules to the challenges:
 * http://compendium.ddo.com/wiki/Challenges