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(+1)

When my group did city gen we gave each population a faction colour instead of putting the pop on the faction card, so inquisition might be red, merchants might be yellow, and the dwarven smiths brown.  If a faction was destroyed the population could move to another faction or neutral white colour.

(+1)

We actually discussed a version like that but I didn't like that it required you to have a lot of different tokens and to frequently swap tokens around if people switch allegiances.