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But as a waring/conquering empire, a federation is probably going to hold you back because you can't go to war without everyone else accepting it first.
Depends on playstyle, I rarely join one and even more rarely start one.
But with the next expansion, we'll see. I mean the whole point of the expansion is federations.
If you’re in a kind of bubble with friends, then ya
If you’re a warmonger, then na
Which is why you make sure that YOU are the leader of the League of Non-Aligned Worlds. When push comes to shove between the Vorlons and the Shadows, you need to make sure you've got the Minbari and the Drazi on YOUR side.
The League choice is also HEAVILY biased in favour of human players; the AI only has a - I believe - 1% chance to choose to head up the League so unless you've already picked one of the Awakened Empires to side with, it's very likely you'll be asked to head up the League.
2. Xenophile Faction Happier
3. More Xenophile Attraction I believe, which is generally the easiest faction to make happy.
4. A combined fleet that the A.I. will toss alloys at to support your own (with it being double the naval cap the combined empires put in).
5. Combined protection/allies
6. Doesn't care how many empires are in it for influence cost.
Negatives:
1. 1 Influence cost (if you have diplomatic traditions and aren't a xenophile).
2. Has to have agreement with other empires for starting wars.
3. Different diplomatic options (can't just make defensive pacts with anyone)
It's mostly just great as a way of peacefully taking over the galaxy.
Take over a few empires starting out, then work towards founding a federation with workable empires, and vassalize or liberate others across the galaxy. More militaristic empires in your federation will support military campaigns more.
I personally really enjoy it, but it is generally not worth it on a mechanics level rather than a for fun level. Mostly because you need the influence, if you're a xenophile certainly go for it and really nothing too much to lose.
Generally if you're already setting up 2 defensive pacts, it's probably worth it.
You probably read the numbers in the wiki article backwards. AI have a 100/101 chance to accept leadership of the non-aligned powers if they are offered and have 20k+ fleet power.
Unless you're playing modded, you lose your commercial pacts because they disappear into "federation taxes." I lost several hundred energy per month because I created a federation with a megacorp trading buddy.
I've never had an AI in a federation deny a war request, and I've had a fanatic pacifist agree to a conquest war once. Usually it's when I enter a federation that the endless war starts in earnest because everyone wants to throw the endless federation fleet around.