After completing the game’s warm-up quest, FF2j begins in earnest. Hilda asks players to find and recover some Mithril, in order to better equip the rebels. I decided now would be a good time to acquaint myself with FF2j’s leveling system, and power up my heroes a bit.

Weapon skill levels
To describe FF2j’s character advancement system as “different” is an understatement. The game has no levels, and no experience points. Instead, characters slowly improve in battle at whatever they do the most. So using Swords a lot improves the Sword weapon skill and physical damage. Using Magic a lot increases total MP and magic damage, and so on.
The system is a good idea, in theory. For one, it allows for much greater flexibility. You can make your Frionel a sword-wielding bruiser, a White Mage, or anything in between. It also allows for much more frequent, but smaller character improvements. No massive leap from level 3 to level 4, like FF1. Instead, you’ll gain a little HP here, a little Agility there, etc.
But… the truth is FF2j’s leveling system is broken in some pretty fundamental ways, and simply isn’t as much fun as a traditional RPG system.
The biggest issue is that the formulas for determining skill-ups are:
1) very strict.
2) Broken & easily abusable.

Quit hitting yourself!
Character HP is a perfect example. The formula for HP increases is simple. If a character loses more than half of their HP in a single battle, they get an HP increase. The problem is that early-game enemies are very weak, so you’ll
never sustain enough damage in a single battle to raise HP. So players have to resort to attacking their own party members (yes, in FF2j you can now target your own party).
So, for literally over an hour, I got into random battles around FF2j’s starting town, beat the stuffing out of my own characters, and watched as their HP skyrocketed. My heroes went from ~50 HP to over 200-300HP in no time flat.

Individual magic spell levels
With HP and MP-ups assessed on a
per battle basis, not a cumulative basis, if you play FF2j “normally,” losing a few HP and spending a few MP in each battle, neither HP nor MP will ever increase. To earn an increase, you need to lose a large chunk of either in a single fight. This encourages abusing the system.
Not all stats are like this. Weapon skills and magic spells level up individually, and cumulatively. Strike with a sword 100 times, and that character is a better sword user. Use a Fire spell 100 times, and the spell becomes Fire 2, Fire 3, etc. (all the way up to Fire 16).
But the fact that so many skills-ups are assessed on a per-battle basis means that random battles often feel like they are accomplishing nothing. This makes FF2j often feel much more frustrating to play than FF1. Example: I run through a lengthy dungeon and get into, let’s say, 40 random battles. None of those 40 battles are even building towards meaningful skill-ups. Maybe my Black Mage took Bolt4 closer to Bolt5, but that’s it. The bottom line is that EXP systems work because the player knows that no random battle is pointless.
Additionally, since the character advancement process is so flexible and fluid, players not using a guide are almost guaranteed to get themselves into major trouble, without any warning. It is common for a stat to be unnecessary for hours of game time, but to suddenly become essential. One early boss is immune to all physical attacks, and almost all magic. Only Ice magic does any damage. Without knowing this, a player is assured to receive a Game Over and be forced to redo the dungeon. Worse, without a guide, they wouldn’t even know what was wrong. All they would know is all their attacks did no damage.
So, despite all this, I don’t really hate FF2j’s system. It’s heart is in the right place. It is just undone by a few details. If all stats increased gradually from steady use in battle, instead of just some, the system might work much better. Plus, once you know FF2j’s “tricks” (mainly beating the crap out of your own party for a few hours at the start of the game), it actually makes the game’s battles quite a bit easier. By the time I reached the first boss, my mage had more HP than the boss did.

Huge HP gains...

...almost overnight! Guaranteed!
So, I wrote this post en lieu of providing a proper play-by-play of my last several hours of play, because it consisted largely of what I outlined above. Every evening, for as long as I could bear it before getting incredibly bored (not long), I would get into a random battle and beat up my own party to boost their stats. I only stopped because the enemies in the area all began fleeing before I did enough damage to earn skill-ups. It might seem cheap, but FF2j almost seems designed to force players to play this way. I can’t imagine what my party’s health pool would be without artificially inflating it.