Okay so you guys figured it out already ;-)
There is no mistake in the formula and divide by zero is never possible.
1+10^(x) would have to be zero for that.
but 10^x is always positive.

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@AndrewAAGamer said in Proposal for a new, ELO-based, ranking system:
BUT, there has to be a standard amount for winning/losing a game against an equal opponent. It is just as difficult for a Tier 2 player to beat another Tier 2 player as it is for a M player to beat another M player. Both winners should go up while both losers should go down by a standard amount. Any system that does not award points for beating an qual opponent makes no sense at all.
And this is the case.
Have a look at some theoretical results I just entered in (I was too lazy to search for actual ones, but I’m sure there are some)

If equal players of any level play against each other, the result is always the same.
@farmboy and @trulpen are basically the same skill level so Ea=1/2 and K-factor with these number of games is 70.
Same with @aagamerz13 and @Odonis
Or with @Sovietishcat and @oysteilo
If the best player against the worst player wins, barely anything will happen though:

@pacifiersboard
Thank you for digging in and trying to find flaws in my system. Highly appreciated! This whole project can only benefit when people are trying to optimize it.
We already cleared your misconception of the current formula. Additionally, your proposal would also be dependent on the highest and lowest rating. This would mean that past results would retroactively change ELO change WHENEVER the highest or lowest ELO changes. Highly problematic! This also creates circular references again.