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In a recent news post by Allods Online developers, they respond to player feedback in regards to cursed items, incense, and current player leveling experience.
CHOMP responds to recent player worries that the game has basically become a pay-to-play MMO. With important items only available through the Item Shop, players have expressed that Allods Online “seems” free-to-play, but for a player to advance, they would have to eventually buy items from the Item Shop with real money. Developers reiterate the fact that there is no game purchase required, players can buy these important items through an auction house or other players who decide to actually pay. The post goes on to say that there are players who have not paid a dime but still are able to have a great gaming experience.
For the full response and more information you can visit their news forums.