Crew happiness depends on the plunder (the higher the better), number of men (the fewer the better), and time since the expedition started (the shorter the better). The influence of time is so strong that you can't have a numerous crew for a long time (yes you should have them killed before dividing the plunder), and you must always divide the plunder eventually sooner or later.
If your crew is unhappy you'll have mutinies, and more importantly the dissatisfied will steal part of your plunder when escaping.
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