Provide the same rewards as PvE:
- Experience for participating and much more experience for winning.
- Gold payouts and publicly visible rank points.
- Legendaries can drop from opponents. Maybe even drop a legendary they were using. It would be some sweet justice if they were using The Star of Azkaranth (fire immunity) and it dropped for you. Better than an ear, for sure.
DPS and Toughness can be sorted out during development. King of the Hill, Capture the Flag and other modes can be added later. I see a great foundation here, and it's time to put this into action.