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Players were equivalent to immortals in the Divine World because even without anyone casting revive on them. They would still respawn in a nearby town or city after a certain time. 

As for the penalty, it was just some debuff and loss of experience points. It wasn't a big deal as opposed to NPCs. 

The NPCs were often labeled as native, given that they were born in the Divine World. 

Revival also worked differently on them. Some NPCs were eligible to be revived, while some weren't. 

Additionally, they would never be respawned if no one cast a revive spell on them. And once a certain set time had passed, the NPCs would cease to exist forever. 

In other words, the NPC had received their true death when that occurred. 

And precisely so that these NPCs would never dare to slack off in a real battle. Their meaning of death was different from the player's meaning of death after all.