Levels are a system by which individuals are able to use RP Points to advance their character through a sort of evolutionary progression to more and more powerful or prestigious races. Roleplay (RP) points are awarded to a player for exceptional roleplaying skills in the confines or limits of their current status. With accrued RP Points, a person may apply them toward either advancing upward through the levels of their current race or shifting horizontally through races. It must be noted, however, that upon switching races or classes, you are automatically reset at the lowest level of the new race.
For the sake of the Fairy Garden being a roleplaying MUSH, levels are not as important to player development as one might think. Newer skills may be granted upon reaching higher levels, but the draw to stay at a lower level should, and hopefully will be, as appealing as advancement.