I found the prison arena, and choose to fight as a 4-person team. On my third attempt, I beat the fight without anyone dying. I went back to the surface and went to see a woman to get my reward:

Having my Source Collar removed!


However, despite the fact that I fought in a team, and couldn't have done that fight alone, only my created character was considered special. No one else was worthy of getting the reward. That does not seem to make much sense.

Also, I'm not going to claim that reward yet, because the instant I'm spotted by one of the many, many guards, I get thrown into a jail cell with no way out. Yay. I would RATHER have the reward instead be that she just breaks the lock so that you CAN take the collar off at will, but you KEEP the collar, so you can continue to walk freely if you equip it. Just remove the "Unequippable"
tag from the collar.