Repairing? Kind of.
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@Tuoni You're not getting the basic math, so who's biased here?
Storage and Market space is finite, so eventually, items end up getting destroyed purely for convenience sake, thus sinking the materials that go into them. You can't put an item of less than 100% durability in the market, so those items go into storage, are being used, or get destroyed.
The 25% of materials 'returned' from salvage injects those materials back into the general overall pool of materials, in essence increasing Material glut instead of mitigating it. All you've done now is made it so that mats can be obtained back from old gear, thus possibly eliminating the need to either hunt or buy from the market to get your materials.
Yes, salvaging doesn't net you all the materials back, but if say 25% of all materials could be reclaimed via salvage, than ultimately, every 100 materials out there in the ether essentially equates to 125, and that's with only 1 generation of salvage. 2 Generations means 400 materials are worth 525 and it progresses, increasing glut.
Salvage ultimately adds to glut, and the only way you would be able to mitigate that is to lower the drop/gather rate of materials to compensate.l
It is actually a far more efficient resource sink to count on players Destroying old gear or running it until it breaks to remove it from the resource pool. This is already evidenced by the amount of low tier items being grind-crafted for Mastery and then simply destroyed. Even with being able to list 20 items in the market, so many more items are being created to get Mastery, and so few slots are available in chests and the bank to store the rest, that 1000s of these junk Primative items are destroyed regularly.
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@GamerSeuss So you are saying that games which are already using salvage system as a resource and item sink are doing it wrong?
I hope that someone would told this to e.g. Sandbox Interactive (Albion) and Amazon Studios (New World) before implementing such item sinks. Perhaps there is still enough time to change Intrepid Studios mind of the planned salvage system because Ashes of Creation is still under the development. 
Moreover, there is also a reason why games will not rely on "item sinks" which forces players to destroy items without getting anything from this kind of process. It feels bad and frustrating if you cannot benefit in any way of items you have created or looted. This is simply bad game designing.
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Personally, hate Albion, and have heard nothing but complaints from New World...
As to Repair/Salvage as a general mechanic...I'm not saying there is anything wrong with putting such a mechanic in your game, if the game is designed around it...but those are games that don't generally have such Material Glut in them...or should be. Fractured has a lot of 'junk' material build up. All useful, and all super common and easy to come by. This is by intent, so a Salvage system wouldn't work for Fractured.
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@GamerSeuss The point is not that do you like those games or not or do you want a salvage system in Fractured or not. The point is that salvage system is a well known item sink which is succesfully used in various games, I just named few examples. You claimed that salvage does not sink resources and items from the game and you think those just increases the number of resources. Basic math and other games easily proofs otherwise, therefore, it would be reasonable use something else than made up things as your argument.
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Speaking of New World... In that game salvaged items will provide materials which can be used to craft repair kits, which are then used for repairing gear pieces. That is interesting repair system which sinks items from the game at the same time.
