What about this as a PVP machanic:
You can PvP in dungeon level 2 and deeper if you take an action.
If/when a player is defeate,d instead of dying, they are sent back to their starting room. The winner gets XP, half of your gold and perhaps one item you have of their choice.
Then, PvP is a threat, not a damnation. Additionally, since you would be unable to attack while in dungeon level one everybody would have to consciously move forward to the next level knowing they can attack and be attacked. It also keeps playing who respawned at their starting point from being attacked straight away again.
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