MoraleGM

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Morale is a support mechanic that can go a long way if properly invested in. It generally serves three functions - increasing army limit, improving your units' attack speed and extending the Command Radius bonuses. To check your Morale and even your units' attack speed, simply click on empty terrain and this information will be displayed in the center of the control panel.

Increasing Unit Attack Speed
Morale increases the attack speed of ALL your units (excluding your hero) by 0.01 of a second for each point of Morale and not just to the ones in your command radius, but all of your units across the map. This value starts at 1.50 of a second (1 and a half seconds) but can't be made any better than 0.50 of a second. When at the maximum attack speed, a unit will be able to make three attacks in the time it would have done to make one at the default attack speed. Of course, this is not easily reachable even by higher level heroes, unless the hero is built specifically for it. But the rewards are well worth it since increased attack speed not only increases overall damage, it also allows your units to land their first critical hits sooner and turn the tide of battle.

Upping Army Limit
Every two points of Morale will increase your army limit by +1. This is deceptively important since many of the buildings in this game are rather large, expensive and unwieldy. So building many of them just to increase army limit may be a nuisance, especially to early game summoning heroes. Also during the Campaign, a few missions are played without any building. Morale helps to offset this problem to some degree.

Increasing Command Duration
When your units are within your command radius, they'll receive a bonus (typically +4 combat and +2 speed). However, upon leaving your hero's command radius, these effects will soon wear off and this duration is equal to your Morale in seconds. So each point of Morale will increase this duration by 1 second.

Increasing Morale
Morale is determined by several factors, but usually from your hero.

From Heroes
For every two points invested in your hero's Charisma stat will increases your Morale by one point.

Every hero has access to a Morale boosting skill which will affect only their hero's native race. These are the "lord" skills, such as Horned Lord, Daemon Lord, Orc Lord etc. For every point invested in these skills will offer +2 Morale but only when you are leading the same race as your hero.

Bard, Chieftain and Illusionist class heroes, as well as any Knight hero, all have access to the Leadership skill, which offers +1 Morale for every point invested in this skill.

When your hero dies, all Morale bonuses from him are immediately removed from your army. Only Morale granted by other units and researches stay in affect.

From Hero Items
There are a few hero items that also affect Morale. Some of these items even decrease it! Below are the ones that increase your Morale for all races: When complete, The Gods item set offers +25 Morale.
 * 1) Blood Banner +1
 * 2) Banner of Rage +1
 * 3) Banner of Seeing +3
 * 4) Woodland Banner +2
 * 5) Lesser Runehelm +1
 * 6) Crown of Insight +2
 * 7) Runehelm +2
 * 8) Greater Runehelm +4
 * 9) Master Runehelm +6
 * 10) Royal Runehelm +8
 * 11) The Captain's Tunic +1
 * 12) Ring of Beuty +4
 * 13) Ice Queen's Harp +3
 * 14) Dragonstones +1
 * 15) Orb of Etheria +5
 * 16) The Aklys of Couatl +2
 * 17) The Stones of Couatl +2
 * 18) The Medallion of Couatl +2
 * 19) Lysean Crown +4

The following items offer Morale to a specific race:
 * 1) Dragon Banner +2 Morale for High Elves.
 * 2) Dwarf on a Stick +4 Morale for Orcs.
 * 3) Orcish Banner +8 Morale for Orcs.
 * 4) Banner of Zhur +4 Morale for Undead.
 * 5) Lost Banner of Lysea +14 Morale for Empire.
 * 6) Crown of Khalel +2 Morale for Dwarves.
 * 7) Bane's Crown +4 Morale for Undead.
 * 8) Stone Crown +10 Morale for Dwarves.
 * 9) Orc Lord's Belt +2 Morale for Orcs.
 * 10) Mechanical Orb +4 Morale for Dark Dwarves.
 * 11) The Vampire's Banner +8 Morale for Undead.

From Units
There are a couple of units in the game which increase your Morale just by being present on the field. The Knight lord offers +2 Morale and the Warlord offers +1 Morale.

From Researches
The Knight race have access to Order of the Lion which offers +2 Morale.

Dwarves, Empire, Minotaurs, The Swarm and Wood Elves all have access to a research trio also named Morale, which offers +9 Morale when all have been researched.

The Ssrathi have access to Warmth which offers +5 Morale.

Decreasing Morale
Decreasing your Morale can only be achieved by certain hero items. The following items are what decrease your Morale when equipped:
 * 1) Staff of the Master -2
 * 2) Merchant's Belt -1
 * 3) Leprechaun's Lyre -1