Some Muds do not have a level-based system. Other MUDs, such as Diku or CircleMUD have 30 levels. Still others have 50, 100, or more levels. Is there a right number?
First, we need to realize that the number of levels cannot be looked at individually. We need to also consider if a MUD has a skill-based system, a remort system, and equiptment system, or other systems that act similar to levels. If a MUD uses a skill system, that is sort of like having a level or each skill. A remort system can effectively double or triple the number of levels. The same is also true for a MUD where equipment make a difference. While these factors are all important, the same general rules apply when deciding how many levels for a MUD to have. These considerations include:
Every Level Should Mean Something
It is not a good idea to double the number of levels and simply make every other level not matter. Many MUD have 50 or 100 levels, when only 20 - 30 of them make a difference. If the main gain for obtaining a level is an additional 10 hitpoints for someone who already has 500 hitpoints, that is not substantial. Likewise, if the main gain is to be able to use a skill that you may use one time for every 200 battles, it is not substantial. As a general rule, each level should allow someone to play in a new zone, defeat a major new MOB, or something similar.
Every Level Should Take Effort to Obtain
Gaining a level should be a major accomplishment. If a MUD has 100 levels, at any given time, the 90% of the players should not be level 100. Generally speaking, after the first few levels, one should not be able to gain a level every 30 minutes.
It Should Not be Too Hard to Level
Making leveling to hard is actually worse than making it too easy. Players will quit if they feel they are not making any progress. Players will get discouraged if they need to play 5 hours to obtain their first level. Early and middle levels should take no longer than 1 to 2 hours to game play each to obtain.
Leveling Should Include Consideration of Race, Class, etc.
A pure warrior should level more quickly than a mixed Warrior/Mage/Cleric. This is because the more complex and more advanced players should be given more of a challenge, while the newer players should be able to more quickly create an average strength char. The idea is that if your end result is better, it needs to be at the trade-off of having a much slower start.
Those are just a few considerations in regards to how many levels to have.