I don't really know how minor factions work in this game, as I haven't gone deep enough to be honest, but I think it's all limited to diplomatic benefits.
What if the minor factions brought unique bonuses, technologies and ships? Something like the minor factions in Age of Empires 3, or the warcraft mercenaries.
Example:
For those who don't know the game, this is a way to take better advantage of the map in your favor, since these settlements usually have unique benefits. These buffs are accessed by building a trading post at said location, and you can then research and craft their units and technologies.
Units trained here do not take up population space, but have a creation limit. In case of being ships, they would not occupy logistic space, but they would have a limit.
Did you check the latest update on the Test version? One of the main things was expanded minor faction capabilities.
I sent this screenshot from Northgard a long while ago for inspiration. Definitely a good idea to expand on the minor factions further, which based on the notes they will continue to do.
Well, I just joined the forums and it's been less than a month since I realized that a sequel to SINS is coming. I'm still not fully aware of what changes and innovations are coming. I assume you mean one of the dev diaries.
Here: https://forums.sinsofasolarempire2.com/522241/page/1/#3901014
Yes, I already saw it because I looked for it a few hours later, but thanks anyway. It looks very interesting.
I am pleased to see this implemented.
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