This mechanic is used in video games as a way of showing the time and effort that the player has put in. It also lets others know in a visual way about the experience of the player. The main type of game that uses mechanic is MMORPG’s
A good example of a game that uses this mechanic is Runescape. Players in this game can train skills to a maximum of 99. These skills include woodcutting, fire making and attack. When the skill reaches 99 the player is awarded a cape of a unique color the displays the symbol for the skill. This cape gives the status of the player and allows them to stand out in a crowd as the visual is easier to see than a line of text.
Another game that uses this mechanic is Destiny. This is a First Person shooter/RPG. This uses the mechanic in a similar way to Runescape, however, more practical. This mechanic makes players have to ‘grind’ which can cause them to stop playing however if the players do stay and grind then eventually they will be rewarded with the best armor in the game. This has a visual appeal which shows other players that they have worked a long time for the reward and also gives the player better stats for future battles.
If I was to use this mechanic in my own game I feel like it would work best in an RPG game. If the game was a single player than the player would be rewarded with a unique piece of armor that they unlock after completing the story of the game. This can also be applied to an MMORPG.