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But yes, a smaller empire has better unity and research, at the cost of having less sectors to gather resources from. You can compensate for this later with mega structures or even subjugating neighbors to get tributes.
I try to go for a midground because size helps. By the mid game you'll want a buffer to fight off large federations and whatnot.
But I've heared that I can still repair those who I might find. Is that true? And if so, how exactly does that work?
You find the ruin in space, then as long as you have mega engineering tech and minerals, you can start rebuilding it. It’ll take around about 10 years, and the nexus and sentry array have some pretty hefty energy upkeeps.
Ringworlds can only be rebuilt one section at time.
It’s worth noting that habitats do not spawn as ruins in the galaxy, and these tend to be the way that a territorially small empire keeps growing into the late game, so the only way to get these is to own Utopia.