Towns can form nations. Nations are political entities which multiple towns can be part of. Joining or creating a nation gives towns multiple benefits, including
The ability to wage war against other nations.
The ability to claim outposts.
Bonus townblocks - the larger the nation, the larger the bonus.
If a town has more than $20,000 in its bank, its mayor can create a nation by typing /n new <nation name>. For example, typing /n new USA will create a nation called 'USA' and will take $20,000 from your town bank. The founding town will become the nation capital, and its mayor will become the nation leader ('king').
You can invite other towns to your nation by typing /n add <town name>. The mayor of the town will be sent a message informing him of the invite and how to accept it. A town must be within 300 chunks of the nation capital's homeblock to be invited.
You can privately talk with players in your nation by typing /nc to switch to nation chat. You can return to general chat by typing /g
Nations have a daily upkeep of $500 which is taken from the nation bank. You can deposit nation
You can set taxes on your nation's towns by typing /n set taxes <tax amount>. Like town taxes, nation taxes are taken every 24 hours in real life and are deposited in the nation bank
/nation set title '<player> '<title goes here> - grants a nation member a title which will appear before their name in chat.
/nation set surname '<player> '<surname goes here> - grants a nation member a surname which will appear after their name in chat.
'/nation set' name <new name> - changes the nation name.
/nation set capital <town> - changes the nation's capital city and transfers nation leadership to its mayor.
/nation set king <player> - transfers nation leadership to a player in your nation.
/nation set tag <tag> - sets your nation tag, which will be shown in chat instead of your full nation name.
Nation leaders can assign ranks to nation members. This can be done by typing /n rank add <player> <rank name>. Like town ranks, these give the rank holder special privileges.
coleader - has all the abilities of the nation leader, including the ability to delete the nation! Give with caution.
chancellor - can manage nation allies and enemies, invite and kick towns, grant titles and surnames and withdraw from the nation bank.
treasurer - can change the tax rate and withdraw from the town bank.