Increasing the size of your backpack is one of the most important things that you can do in this game because having more backpack space allows you to carry more items. With a larger backpack, you won't have to leave your quest area to come back to the Fields to get rid of unwanted items and weapons as often. Increasing your backpack space is also important if you frequently receive blessings from the Royal Court because you'll have more room for weapons and items that you don't want to rust.
Increasing Backpack Size
As of now, the only ways to increase the size of your backpack are to either equip a rare weapon with the Merchant and/or Trader attribute or join a clan that has the Merchant and/or Trader ability. When you have either of these abilities, you'll have an additional 20 backpack spaces. If you have BOTH of these abilities, you'll have an additional 40 backpack spaces.
Don't Carry Too Much
Having a larger backpack doesn't mean that you should keep everything in your backpack while you're questing. There are some monsters in the game that will mesmerize you and take half your gear regardless of whether or not you have any Bottled Faeries in your backpack, so store your valuables in the Silver Storage while you're out there questing. Bring them out after you've finished questing and have asked for a blessing at the Royal Court.
Backpack Size in the Past
Before the DC Upgrade on April 8, 2002, the size of a character's backpack was determined by the character's level. Today, every character has 60, 80, or 100 backpack spaces regardless of level.