Source in Chinese https://bbs.hupu.com/37994627.html
too long did not translate (the article actually is mostly on why it is necessary to reduce budget, and it describes very little details):
there will be salary cap on teams. Teams going over will be punished by luxury tax and losing the privilege to sign new players. Players performances and honours will be quantified using a data-driven approach, and it will be linked to players' salaries. The specific algorithms for assigning tiers will be announced later on.
One comment says in KPL (China's mobile moba league also operated by tencent), players are assigned tiers. Only very few players receive S tier and S tier players have the same salary (about 20k USD per month including streaming).
Another comment says that maybe one day a young team wins LPL, and then all players get promoted to S/A tier and then the team will explode due to luxury tax. So maybe the club owner will instruct the players to throw instead.
