You can create a town for $2000. Towns must have money in their bank to pay upkeep or they will fall. The upkeep increases with $5 for every claim the town has. Residents are protected from outsiders in the town unless the town's nation is at war.
A nation is a collection of towns that have joined together. A nation has a capital which is the town that formed the nation. A nation can be formed for $15000. Being in a nation comes with benefits such as being able to teleport to each town in the nation, making trade and travel easier. However, towns in nations are forced into war if a nation declares war on another nation. The nation must kick the town or be conquered by another nation to leave their current nation.
When a nation declares war on another nation, PvP is turned on in the towns at war, and spawn traveling is disabled in enemy territory. The two nations are given a defense value equal to the number of towns in the nation, and each town within those nations are given a defense value equal to the number of residents * 2 + town plots * 0.5.
If a resident of a nation at war is killed by a member of the enemy nation, a defense point is taken off of the victim's town. Once the town defense reaches zero, it gets added to the enemies nation, a defense point is taken off of the victim's nation, and the victim's nation balance divided by the number of towns in that nation and added to the victor's nation balance. Conquered towns must remain in the nation that conquered them until such a time as their kicked, or conquered by another nation Players may not capture a nations capital city until all other towns in the enemy nation have been captured.