I don’t know what could be done to improve this event. I’m personally not a fan of a FFA zonewide bloodbath every 3 hours. It’s one thing to opt into an instance for that, another thing if I’m just in town waiting on a zeppelin then get rushed by all the guards, or just wanted to quest and then all the groups start forming to hunt people down.
To make it feel better, I’d just make it to where instead of having a 1 minute debuff after death where you don’t give coins, make it so graveyards are sanctuary areas, so that people aren’t being spawn camped. When they stray out, they are fair game, and nobody is having to guess whether or not you give blood, which in turn makes it easier to farm blood. The hotfixes they added make farming blood harder, which makes it annoying to farm when people want to buy the weapons. This is an instance where the event in its original form, flawed as it was, felt better than the event after the hotfixes, because at least it felt rewarding before.