I read many of long and very detailed answer in this thread and I know that there is also a suggestion/request to develop a market among the gamers.
I think that combining the two ideas/requests about alchemy and market could make the magic in an easier and more sustainable way for everybody included the game editor.
*** EXPLANATION ***
Ascending Material (AM) are rated between 1* and 5*. The common gamer have many items that do not use (but probably, will be useful in the next future because are higher stars AM) while the advanced gamer have a lot of items which are crap for him and got boring finding the very rare AM item.
After all, the Game Editor wish not that alchemy disrupt the items frequency making some quest too easy. Exchanging among gamers is a good way to keep frequencies constant.
Trading could start after level 15, 20, 25, or higher when the player had some kind of experience about the game and community.
*** EXAMPLE ***
Trading 1* AM should be done in 5 pieces at time. The player put this material on bid and wait 1 day others players make a good offer.
Trading 5* AM should be done in just 1 piece at time. The player put this material on bid and wait 5 days others players make a good offer.
As the rule of thumb: higher is the AM’s level and more time the bid stay on the market and less items are required to open the bid.
*** LIMITATIONS ***
Trading bid for lowest items (1* and 2*) should limited within the alliance and the currency could be iron or food (gems as universal substitute). This allows people to trade food and iron, as well.
For higher level AM the bid could be national (3* and 4*) and global (5*). Gems became the only currency allowed. As option, the bid could be limited within an alliance in such a way the teamates could help each others.
Confusion about bids and market running could arise. On global scale it could make take over the idea that packages of items would be sold by alliance. Within an alliance, people collect some stuff and offer them on a global/national bid.
Trading fee could be collected by Game Editor.
I hope this help.