why are gnomes so populous (or at least, populous enough to be in the top 5 most populous species)? IIRC, they're not that prolific of breeders?
To answer this, I must talk about the history of gnomes for a moment. All gnomes descend from just three ancient tribes in Umory-Ond. These tribes had a lot of interaction with eachother and developed a lot of cultural similarities before they travelled overseas to new lands.
Even in modern times, many gnomes adhere to these ancient, traditional ways of life. That's because their size makes it hard for them to interact with larger peoples and pick up new ways. They tend to stick to enclaves their own kind, so their cultures don't change much.
Traditionally, gnomes had a lot of children. They can afford to do this much easier than other species, because frankly, their size means that resources go a lot further for them. A loaf of bread feeds one human for one day. But that same loaf of bread feeds an entire gnome family for a week! Clothes can be expensive, but gnomes only need a tiny scrap of fabric to make a whole outfit. You get the idea...
Because of their small size, they often go unnoticed and unchallenged by other peoples. Gnomes have avoided a lot of conflicts throughout history because they were not regarded as a threat to anyone. Thousands of gnomes take up very little land and resources compared to thousands of centaurs, so other peoples were not fighting them for these things very often. Less wars + less death = more gnomes survive and go on to breed. There has never been a gnome-specific genocide in Looming Gaia's history, which cannot be said for any other species.
Today, most gnome families have between 2-4 children. In the past, 6-10 children was typical. Though they have a fewer children than their ancestors, all the other factors still apply: they rarely die to war or struggle to acquire resources.
Also, their traditional cultures encourage strong community while discouraging deviance, so they are less likely to suffer from mental health problems, addictions, and general dysfunction which claims the lives of most other species. Gnome communities are known to be rather conservative and even xenophobic at times, but these communities are also very supportive of their own kind.
Isolated, destitute gnomes are quite rare. Even if their families don't support them, gnomes can easily sustain themselves on the leftovers of larger peoples without facing the typical consequences. They can also live among animals with their natural affinity for beasts.
In some areas, "homeless" gnomes infest the houses of larger peoples like mice do. The homeowners may not notice for a long time because the gnomes are so small, and their impact is small too. Entire gnome communities have been discovered dwelling in peoples' walls or attics, surviving on dinner scraps for generations! Some homeowners are aware, and choose to allow this because the gnomes can actually be beneficial, by chasing away more destructive pests like rodents while asking for very little in return.
Now imagine a family of trolls trying to pull that off...
I will also mention that the majority of gnomes do not pay taxes or use gold as currency at all, even if they live within Great Kingdom jurisdiction. They tend to isolate in their own little communities, to the point that many are not even registered as citizens and the kingdoms don't realize they exist (or just don't care because they have such a small impact anyway). Gnomes take care of their own kind for the most part, and without the crushing weight of capitalism pushing down on them, they are more inclined to raise big families.
Their small size makes it easy for gnomes to live just about anywhere, even in seemingly barren areas that could never support larger species.
Sometimes it pays to be small!
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