EDIT: I have since revised my question so that it [hopefully] more closely adheres to community guidelines.
I am trying to jumpstart a thought-experiment that would attempt to create a society whose government, culture, etc., is based off the conventions of fantasy games: I want to include as many conventions as are applicable: video games, MMOs, tabletop, LARP, the recent trend of gamification in everyday life, etc.
A group of nerds is given the opportunity to create their own society. Let's say they're transplanted to a virgin world without human life and [something that is at least analogous to] magic, and are allowed to just make their own society based on these rules. Like a LARP, but all the time. Several generations into this we have a society and I'm curious to see what it looks like.
I'm not so much worried about the question of how they got there or how they made it possible: let's just say they did, and they were successful. What I'm concerned with is finding ways to integrate RPG elements into this society and trying to understand how they would work on a literal level. Specifically, how the rules and regulations would be enforced on a governmental/bureaucratic level, and on the level of an everyday citizen.
While magic exists, I would like to leave it out as a convenient way to just explain things away. Like, "leveling up" would in this scenario be something akin to tallying progress and being recognized and enforced by some overseeing governing body. You don't magically gain strength or charisma, you earn it like you normally would, through training and experience; but those qualities would be gauged somehow in some nebulous process I have yet to determine, in which case you would be rewarded a badge or recognition of some kind that you ARE that level of...whatever quality is being weighed. You're stronger than this guy, you're less charismatic than this guy, you have this much magical experience, you gained a lot of fame from this deed, and this is all tallied up into being a final score: you are level 37, etc. So how would that work?
Please, discuss. And let me know if this needs further refining. Please and thank you.