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Do you just recruit a truly ridiculous number of them?
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This. You've got to remember that the hit on blood income is "compensated" by loss on hammers and gems gen for gems, which hits non-blood nations very hard (thugging is much more difficult in mid game and numbers of SC in mid / late game are greatly reduced). And one of the main Blood advantage, they still have only a "minimal 2 paths" needing research (blood and construction).