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1. The first floor should be a common area that thus anybody is allowed to pass through, to allow for above ground passage for any player. If you wish to keep it enclosed, there should be a door on both sides of the first floor, which both must be within jumping height, in case you don't want annoying zombies pounding at it, but still allow for easy player access.
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2. One floor must include space for one NPC (whatever is required for that), so that those who are building a house at least contribute something in that regard. It most likely would be the second floor to satisfy that earlier on, but it could be anywhere but the first floor.
Yes. I know that Terraria's servers
do include the capacity to house multiple Merchants. Read the
second half of this page.
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3. The rest of the house you have full freedom to design however you wish, except that you should not invade the air space directly above someone else's house, so that they are also allowed to expand above their own house. If you wish to create a skybridge between neighboring houses where both are tall enough to make possible, that is fine though.
Haha, oh yes, definitely. This likely includes the space
below a player's house. In fact, we should consider horizontal expansion below ground to be in general ill taste. Perhaps we ought to consider a "
sphere of influence" to be in order? I.e. we imagine a large sphere
twice the size of their current house, including the entire space above and thrice the space below, to be off limits to our own personal building.
Horizontal digging underground can get interesting. We should
ALSO.I would like to propose one potential new condition to the world:
We can all import as much wood from other characters as we want. I kinda feel like I don't want to destroy as much of the overworld's (Haha) trees as we will have to to start out. I don't think people have a tendency to plant acorns in their destructive tree-harvesting wake, after all.
This is also so that sign-making can be a swift and easy process.
I DO NOT want to see people invading other peoples' houses and encroaching on their proverbial territory. It may be a free world, but any troubles we have with each other, (May it never happen...) can carry over onto the forums...