Rumor system:
This acts like a leaderboad. The citizens of the hometowns will say thing like, "I hear Vikatimees has captured over 50 criminals!" or like, "I hear that Thulgan had killed over 100 men!". They announce stats for people who have like most pks, most quests, mosts gold, most deaths, most hours, most masteries, etc.
Rp rewards:
Implement RP points which are given out to players for submitting good rp logs. Then have a store where you can redeem them for owner only items. maybe have hidden rpeq vendors that sell different types of stuff. Not just eq but like potion bundles, super backpacks, super food, etc. whatever. you can use your imaginations.
Rumor will be part of the new Herald skill set.
Rp points is something that will be implemented soon. You'll get more details from the change log.
Hope this isnt a stupid question..
the RP points be issued to the submitter, or to all of the people involved in a submitted log?
I assume that they will go to everyone involved in a submitted log.
and omg why didnt you do this before Sepahoona died!!!! ;P
from what I can say the rp points are going to be for many many different rp moments, logs may just be a part of them.
Cel used to have a great suggestion thread concerning rumours 
Exactly. We'll use quite a bit from that. 
I just hope you can loot other people's rp rewards! Fluffy Bunny Ears.