http://massivelyop.com/2016/01/28/shroud-of-the-avatar-drops-release-26-update-with-a-full-character-wipe/

Here’s the bad news for players looking forward to the next major Shroud of the Avatar patch: A character wipe is happening. All of your character and housing information is getting wiped away due to various large-scale changes being made to combat. As with previous wipes, you’ll earn 300% additional experience until you reach the level of experience you had before the wipe, so you can at least get your progress back pretty quickly. The good news, on the other hand, is the fact that nearly everything in the game has been updated and improved.

Characters will now have access to five new scenes, including more stops along the Truth and Courage story arcs, and the combat engine has had significant changes to balance and responsiveness. There’s also a new crafting architecture in place within the game, allowing dedicated creators even more options in the long run. Check out the full list of patch notes before diving into the latest patch to experience it for yourself.

Source: Official Site. Thanks, BigMikeyOcho!