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No.
Removing Castle as a fort increases towering competitiveness as a whole.
Benefits far outweigh the negatives of not having it as a fort anymore
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Removing towers never really increased competitiveness though, it just lowered the number of guilds that towered and increased their populations, arguably making it less competitive? Because no one is going to attack a tower if they don't have a chance of capturing it
Hopefully that changes with the new system though, it would be nice to see some competition