What I mean is that a merchant/burgher-dominated republican governmental form isn't exactly optimal for ruling over massive swaths of land. If we could see Genoa rise to prominence in the game via banking, that'd be great, but that's simply not part of the game.Venice experienced multiple resurgences and only fell in the last few years of the game while Genoa dominated Europe through banking at its height. Merchant Republics becoming Empires or majors due to a player aware of what not to do is not unrealistic.
And it's not like it's impossible to have more than 20 Provinces as a Merchant Republic, it just gets increasingly more difficult to maintain your current order, which makes sense. Do you expect the nobility, clergy and other factions to sit idly by as a merchant-ruled confederation takes over control of all their land? Merchant Republics don't have Estates, but I think it's a reasonable abstraction to have the interests of the non-merchant class be represented by deteriorating Republican Tradition.
And as mentioned several times before, Trade Leagues and Vassals are a way to still expand your influence. Transferring Trade Power no longer costs Relationship slots either, so that provides another option. I think a greater reliance on Subject management is an adequate way to portray the difficulties an early modern merchant-ruled republic would have faced when it comes to administration and stability.
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