If you reform, you become more powerful and can wage holy wars of your own, though you are still subject to being attacked by Christians and Muslims. If you convert, you are spared from the holy wars (and can end an ongoing holy war in its tracks) but have to forge your own CBs to right your new co-religionists and are saddled with the burden of converting your whole country. If you stay pagan but do not reform, you eventually will find yourself under a lot of pressure to convert or be destroyed by crusades. Really, its purpose is to be a viable alternative to converting to Christianity or Islam, and there are advantages and disadvantages to both. Lastly, you gain the ability to call Great Holy Wars just like Christian Crusades or Muslim Jihads. You can change succession laws and increase Crown Authority. After you reform, you can call holy wars on all Christians and Muslims and so have free reign to conquer as much of Europe or Africa as you please. In addition, reforming the religion allows you to enforce religious unity throughout the empire to maintain stability. Pagans can take concubines and easily declare war on anyone with no justification for small bits of territory.
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