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Almost all other private qol assets provide 50 per level, arena is at 100.

As you can see, it still needs 2.1k pop, like a lvl2 private QoL asset.

Also, isn't the Arena only available from fate point stratagems ? That would make it perhaps even a tad too weak ?

Right, I had not noticed it has a higher amount of worker. That makes more sense. However the private economy will also build it even if the fate stratagem isn't played. Maybe the intention is to make it worth 1 fate point.