I've seen so many past things on this and I'd thought i'd give my idea on it. I would love to be able to recycle old tools and blocks I dont need. Get some resources back while throwing away the stuff you dont need. For example: you dont need a stone pick after crafting the iron one, so you recycle it and once you recycle it you get half of the crafting cost plus a small amount of XP. For things like spades or small crafting recipes you should only get one item back and that item should be random from that recipe along with getting a tiny bit of XP. The more resources you need for a recipe the more resources you should receive plus more XP but not too much. The recycler should be a hard to get so you would need Netherite shards and iron to craft it, if you don't have shards however you can find a recycler at a Village's blacksmith, it should act as a anvil that if a block is mined from under it, it will fall like a anvil do to it being heavy. To mine a recycler you need a diamond pick due to it being made of a strong material. I'm not too sure of a good crafting recipe for the recycler but Iron/Iron blocks and Netherite shards in some order would do good. The reason I make it so expensive to craft is do to it giving half of a recipes resources and mainly give percentages of XP back, its a good way to balance it from being to "OP" and, just like a anvil, it can damage over time from recycling to much so you'll need iron to repair it. You cannot recycle some things like potions, elytras, heads, ect., damaged tools will give you the smallest amount back and little to no XP depending on how damaged a tool is, Totems of undying wont give you any resources back instead it will give you a good chunk of XP since the totem is considered a "magic" item but upon doing this it will damage your recycler greatly. In fact the more expensive an item is the more it will damage your recycler, also a cooldown would need to be in effect for the really expensive things so you cant spam farm resources and XP from it, lower tier items wont have such a cooldown like high tier things. Please let me know what you think of this Idea and let me know if you have questions, comments, or suggestions to this. This is my first post on here so if I messed something up let me know. I'll put a poll for those to vote if they think this would be a great Idea to come to the future of Minecraft.
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As for the idea, I'm not against the concept but I am against the implementation you give here. It seems very clunky and convoluted for what should be a simple game mechanic.
The first thing I dislike is that recycling basically anything would give you XP. You don't say how much, but XP is already super easy to get even without a mob grinder, and mob grinders are easy to make. There just isn't a point to having this give small amounts of XP.
The cost of getting this is something I dislike as well. It requires either getting lucky with Village generation or going after a rare Nether item for what amounts to a Control + Z for crafting.
To me, the implementation of this should be simple:
1. Takes Iron to make but isn't more expensive than that. A mid-game item.
2. Doesn't have durability.
3. ONLY de-crafts items that can be crafted in the crafting grid, additional restrictions may apply (I'm not going to look at every craftable item to check for balance for a block I don't care about that much)
4. In order to de-craft, you must put in the number of items in that is equal to how many you would get from crafting one set of it. For example, crafting Stairs gives you 4 Stairs. In order to de-craft you must put 4 Stairs into the recycler.
5. You get whatever items are made to craft the item. No XP, no partial returns, it functions 100% as the reverse of crafting.
6. If an item has durability, it must be full durability to de-craft. Want to de-craft your Stone Pick after getting Iron? Too bad. Either repair it or just use it ~120 more times until it breaks. It's 3 Stone, deal with it.
7. If there are items that can be crafted multiple ways, you can cycle between the different recipes before de-crafting. Being able to convert Cobble into Blackstone by crafting and de-crafting Furnaces is a non-issue.
That method is 10 times simpler to understand/use and is much more balanced.
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Not in the way you proposed.
Most items are farmable, especially stone pickaxes.
Many of items can be recycled already in one way or another - wooden trash is burnable, metals can be re-smelted into nuggets (I'd like it to be much more efficient though, one nugget is a joke), organic matter is compostable (note the process can be automated just like smelting if not more easily)...
At most recycling of magic-related items.
But experience sounds too abusable.
I'd opt for some kind of magic dust or liquid that can be used for industrial processes, like replacing lapis in crafting table, blaze powder in brewing stand, or be used to convert some other magic substances like lapis or blaze powder into their duplicates that while increased in quantity (1 standard item yielding 4 dupes or so) cannot be duped once more.
Only stone-related items bother me... maybe there should be an option to grind them all into concrete/asphalt... blackstone, cobblestone, endstone, stone brick, nether brick, ceramic brick, quartz, prismarine, terracotta glazed or not, glass or even other concrete...
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Totalitarian architecture. Angular, defensible masonry over sleek, sloped carpentry.
Taking it slow. Provoking into attack typically does better rushing.
Underground engineering. Well-lit tunnels are much safer and often cheaper than any surface construct.
Farmability. One of primary concerns relating to any feature.
Practical mobs. No annoyances taking up space and processor power.
Generalism and simplicity. Overly complicated and specialized concepts hardly ever come into fruition.