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We already tried it without conversion — the Griffin Conservatories / Dragon Fly Hives immediately stop rolling, since you can't assemble a punch stack from them. As a result, balance decreases; double-build and external dwellings provide a strong, and, most importantly, a very difficult-to-counter advantage.

Therefore, after some time the idea of conversion for money came up. At the same time, this puts a barrier against double-builds, because there isn't enough money for rebuilding/purchasing two Castles and also for conversion.