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Either way, you don't need a hat or a furniture prize for decorating a house. You get enough recognition if you're listed on the leaderboards.
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Son, I was getting recognition for my house without leaderboards.
In fact, even with the leaderboard in place, I haven't changed my basic activity, except maybe enthusiasm for changing the layout more. If there were a reward that were somehow implemented in such a way to discourage this swarm of random empty/novice houses from crowding the streets, it would be for the best.