Here are a few things that I think should be implemented to modify character names.

Capital Letters (Case Sensitive): You should be able to put capital letters anywhere in your name. For example, if i wanted to name my character "Knight" but the name was already taken, you should be able to make the name "KniGht" or any other combination of letters. Also, the first letter shouldnt be automatically capitalized, you should be able to decide.

Spaces: Your character name should be able to be more than one word. A name with two words clumped together like "Spiralknight" doesnt look as good as "Spiral Knight." I understand that there are hyphens at the moment, but some people would most likely prefer to uses spaces.

Numbers: You should be able to have numbers in your character name if you so choose.

Character Name Changes: A feature should be added into the game that lets you change your character name in exchange for a SMALL amount of energy (Let's say 250 CE). However that amount could be increased if this feature is abused and people are rapidly changing their names.

Colors: You should also be able to edit the color you picked at the beginning of the game, in certain instances, a specific armor does not look very well with certain colors. People should be able to edit them in exchange for energy.

I hope these features are taken into account. This game is rapidly growing and one word character names are beginning to get old. With more options, people can be more creative and have more things to choose from.