The S2Member addon currently only supports changing the level threshold of where membership discounts are given, not different discounts for each level.
e.g.
Level Free (non member)
Level 0
Level 1
Level 2
So if the S2Member setting is set at Level 1, then Level 1 and Level 2 will see the discounted price, Free and Level 0 will see the default non member price.
You would need to modify the code of the member’s add-on in order to add a third tier of prices (making the events free). There are 7 places in member_functions.php where it checks whether the user is over the threshold. You would need to modify each of those places appropriately, so that instead of 2 outcomes, (user is under threshold, user is over threshold), there would be 3 outcomes, (user is under threshold, user is over threshold, user is premium member).
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