True Particle Effects.
Particles are rendered on small 3d meshes or more typically on single quads with a billboard effect (they always face the camera). Another method is using point-sprites. Some older hardware are very good with point-sprites, but modern GPU's usually render them in software. Hardware instancing could be used to speed up rendering of geometry based particles, but that is a bit hi-end for fonline. Either way both methods use textures with transparencies if anything more complex then a pixel in needed, if they need to be animated series of images (usually stored side by side in one file). Particles like this are rendered in hundreds and thousands and are controlled by a physic script that determine their behaviour (mass, speed, time to live, birthrate, collisions, starting angle, etc).
....for fonline it's an overkill, and somehow I don't see it as becoming a part of the engine.
Pre-Rendered Particles
This is something much simpler. It's just a 2d animation of blood, fire or smoke put on top of the 3d model. Alpha testing and depth sort is still kind of needed but no advanced physic is needed and it only takes 2 triangles to draw.
I says we don't do a particle system at all, just use prerendered effects. It's only blood, gore, smoke and muzzle flashes.