PLEASE BEAR IN MIND THAT THIS INFORMATION IS ENTIRELY BASED ON HOMY'S TESTIMONY!!!
History of the creation of the system:
Only the God of creation existed.
He created more sub-gods because he was lonely. Sub-gods were made in a way that they couldn't oppose Creation.
Homy/Andrew, the god of humans, got created and was for some unknown reason free from Creations influence.
Proceeded to create humanity, giving them resistance to other godly influence, and gave them the potential to get powerful enough to oppose the gods.
Creation interfered. Sealing Homy/Andrew away. Also, sealed away the three powers humans possess. (Aura, Psy, Magic)
While sealed, Homy/Andrew develops the original system to allow humans to grow to their full potential and prevent further godly interference.
Homy/Andrew gets free and implements the system, but Creation and the other sub-gods can twist the system to make it not impossible like before, but still extremely hard for humans to reach their full potential.
How the system tries to stunt humanities growth:
Levels: To increase your level, you have to fight and kill ten demons on the same level as yourself, ignoring everything else.
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Tier: The higher your Tier, the higher base stats and stat gain per level. Making it almost impossible for low-Tiers to keep up with the demon's growth rate. Need to raise level to 100 to reset to level 0 and increase Tier by one.
Class: Forceful stat-distribution, Skill experience multipliers, and a low degree of probability manipulation are employed to force people into positions where they are happy and can't do any damage.
Skills: If a person can run with a max speed that's 50% of his theoretical maximum and he has a level 50 running Skill, those add up to 100%. At that point, the person can't improve anymore and thus stops training sooner or later. But if both, personal ability and Skill level, reach 100%, a person can create an "ability" that puts the Skill into reality-bending territories.
Talents:
Talents are unique to every person and just a representation of how a person's natural talent interacts with the system.
Waves, Settlers, Heroes:
The Demon's strength:
The average strength, growth rate, and max level of demons depend on average strength and the highest individual strength in an area, as well as the total number of people. This is true at all times, but much more noticeable during waves.
Waves and Settlers:
Waves were made to try and kill off as many humans as possible while the settlers were made to prevent that.
Wave level:
Just by not dying during a wave, a person's Wave-level increases. This raises the average strength of humans significantly, thus increasing the demon's strength in turn, but doesn't make a single individual dangerously strong.
Heroes:
Heroes are the god's "puppets". Their natural talents are sealed and replaced with the "incarnation" ability, allowing them to borrow power from their respective gods. By being directly promoted to Tier 5, they lose out on 70 base-stat points in all stats that they would have received had they started on Tier 1. They are extremely strong but so dependent on their god's powers that their growth is stunted after a certain point.
They also serve the purpose of showing others that only "chosen ones" can become that powerful.