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What is the ring (AKA the octagon) for?

AKA Octagon ring
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What is the ring (AKA the octagon) for?

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In here players can fight other players. Boxing is a good way to skill and raise your health. If you get someone to stand in the ring then you can shoot them to skill your rifle or pistol, though keep in mind you will be getting no loot for your wasted ammo.

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