That code is in descr_faction_standing.txt. It looks like this:
Code:
;------------------------------------------
Trigger 0092_Update_Easy_Difficulty
WhenToTest FactionTurnStart
Condition CampaignDifficulty = easy
FactionStanding exclude_factions { } normalise 1.0 50
;------------------------------------------
Trigger 0093_Update_Normal_Difficulty
WhenToTest FactionTurnStart
Condition CampaignDifficulty = medium
FactionStanding exclude_factions { } normalise 0.0 50
;------------------------------------------
Trigger 0094_Update_Hard_Difficulty
WhenToTest FactionTurnStart
Condition CampaignDifficulty = hard
FactionStanding exclude_factions { } normalise -0.5 50
;------------------------------------------
Trigger 0095_Update_Very_Hard_Difficulty
WhenToTest FactionTurnStart
Condition CampaignDifficulty = very_hard
FactionStanding exclude_factions { } normalise -1.0 40
To understand it you should understand normalise too - basically, "normalise -1.0 40" would mean -1.0 is the target value. The game then calculates how far you are from -1.0 relations with each faction, and takes you 1/40th of the way to -1.0. So if you're at -0.6, the difference is -0.4, so you'll lose -0.4/40 = 0.01 standing that turn. The extreme case of perfect relations is 1.0, for a difference of 2.0, and a loss of 2.0/40 = 0.05.
If you're looking to simply parallel the per-year rate of how it deteriorates in vanilla, all you'd need to do is replace each divisor (the 50 or 40) with 4 times its current value, so 200 for the first 3 and 160 for the last one. It won't be quite perfect, but close enough that it should maintain the feel.
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