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dude. I never thought about this and I have 100 hrs (Im ♥♥♥♥). I'll give this a try
This is brilliant.
Why would you build example farm & fields with your own gold to you vassal territory and get 10% of the 0,8 gold by feudal contract tax when you can build it to your domain and get full 0,8 for yourself?
By the same logic now your vassal have good gold income and weak army and they just compensate army weakness by buying mercenaries with gold. You can see that with Pope he prints mercenaries nonstop because of the gold bank if he ever gets attacked.
If you're going to admire 'The Prince', don't half-a** it. :) Dread will reduce troop maintenance costs as well as 'solve' many issues with courtiers, vassals, and peers.
If you cannot be loved, be feared.
https://www.youtube.com/watch?v=2WxHT-0Gn7o