for example, win 3 matches in a row in ranked on 1vs1 etc. And the most difficult ones avatars should have a distinguishable frame
If you can unlock additional customization options for your home city, I think I will be motivated to challenge
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No, any future matchmaking rewards should be separate from the event challenges. That would turn off new or casual players at most.
I think the challenges are meant to engage all players of all skill level. If you want more aggressive challenges, there are ones on Steam too.
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Thats a nice idea 
Rewards are interesting, but imo they should be exclusive to the event (non obtainable after), and present attractive rewards for all players. Also, it should cover all the gameplay experience, not only multiplayer lobbies.
The easiest way to do that is to present rewards as a Milestone, where you get things by achieving certain levels by playing content. If you want people to play ranked matches, give it a higher reward tier value (aka you win triple points toward the reward if you play a ranked match rather then a solo skirmish).
This system also allow for leaderboards with prizes for highest tiers, wich can be rewarded with unique skins/avatars and incentivate people to grind overall.
It also allow to gate certain gameplay improvements within the event: You can release a new Historical Battle, for example, (wich will probably be distributed for free, if ever done), and give it as a event Major reward, giving people a reason to grind beside cosmetics.
Finally, and i hope the art team explore this idea, you can have unique skins for units, as other RTS games had done: it allow for some “out-of-mainstream” freedom while designing or tweaking existing units. (i think DE models are beautiful, but there is always room for more unique ).
Nonetheless, it’s nice to see rewarding events showing up on AOE3DE. Thanks for expanding the gameplay experience!
can you explain why would they be turned off?
it turnes me off to have those easy challenges because they can be done playing a 1vs1 versus AI and then use the tuck tuck cheat or instantly win cheat and still counts
matchmaking if for all levels you play with people of your same level
It’s a turnoff to even have these challenges, RE had a lot better avatars with a wider selection and you didn’t have to do anything to unlock them besides getting the game and it’s expansions for the avatars that were introduced in TWC and TAD.
lol you make honor to your image on your profile