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the first improve your reputation in the village
the second improve the prosperity of the village. prosperity building cost construction points
the bonus from the building is permanent
you also get temporary prosperity points through the Town trade interface. these points can push you over the threshold of the different levels, but it's temporary, So if your out of build points and have bottle-necked yourself on construction points make sure you are in the area and have the ground picked out before you make the town trade.