It increases the corruption in far away cities. so while you do get a boost near the FP, you pay a higher penalty farther away. The corruption is so bad that I stopped building it at all. This going to be fixed with the patch.
what is good, is that you should build your forbidden palace far away from your palace and preferably in a productive area. in TET's map, i was china and my forbidden palace was in europe and the productivity there was originally 1 sheild per turn and after that, it was about 70 sheilds per turn
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