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What do the stars on my kingdom mean?

The stars on a kingdom represent its Kingdom Power Level.

Kingdom Power provides the following bonuses:

Level Bonus
0 (base) +50 Gold per Day
1  Double Tribute Reward
2 +50 Gold per Day
3 Double Tribute Chance
4 +50 Gold per Day
5 Double Skill Bonus
6 +100 Gold per Day
7 Triple Tribute Reward