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2. They're far away so you can ignore them for a while. If I made 'em closer, they'd start demanding tribute a lot more often. The modifiable (see settings) time to upgrade is 45 days: plenty of time to travel anywhere with a caravan.
On the whole, if I make the events stronger, I'll also want a negative event that counterbalances it all. Any suggestions?
1. Is there some way to take the players colony wealth into consideration? In early game both the up-front payment and their own silver stock are both low, but in late game it is way higher? With some random variation to keep it surprising.
While I have not done the math, my main doubt was whether or not it was very profitable. But then again, it is an extra opportunity to gain some silver from traders, so it does not have to be way more profitable than normal trade.
2. I noticed the mod setting later :P, my bad. If they are far away than I could just ignore them. I don't know if there is a limit to how many outposts/settlements they can create because there are already 2 settlements right next to each other with an outpost a few tiles away. I have not played long enough to see if they continue spreading.