Ability of any player to just create town for whats basically some spare change made it so that towns are viewed more like means to protect your house and nothing else, besides that, everyone simply wants to lead a town and be a "King" with vast majority of people not even knowing how to do it in the first place, or how to make money for it, or even how the server works. this simply brought nations in state it is in right now, with most numerous towns having max 4 players online at a time, which means concepts such as economy, teamwork, GEOPOLITICS, and proper "towns" by true meaning of that word do not exist, and new players most often just quit when they find themselves alone in their own town with no clue what to do and nobody willing to join them, in my opinion, making a requirement for a town to have 10 (or 5 if you wanna go easy on them Zeefy) residents to make a first claim would make it so that towns are only created by people who actually want to lead them and new players will simply deem creation of such town difficult if they are playing solo, so they will either come together and choose a leader to create it, or join someone else, which would in turn force players to form actuall comunities which might make vast majority of underused game mechanics actually work.
Short Version: Make it a requirement for a town to have certain number of players (5-10) to make claims, so that towns are actually created by groups of people working together and not solo players who want to stroke their ego with their new "xXKINGXx" title, this might actually make stuff like economy work.