Isn't the land completely barren in the first place? So therefore you would have to use essence for that essential first city. Other than that it looks amazing.
funkmanrules
Look at Outlaw's post, it makes a lot of sense. Here is the link: Shards and Land Restoration are Boring: How we might fix it
Sounds cool, but I think that for the essence part you should slowly gain essence (not just an immediate gain like now when you level up) when you are on personally transformed territory and got a combat bonus, because you have a magical connection. Also shards should be able to slowly regenerate land just by itself due to the incredible magical power, making it easier to transform that land.
I think Essence should be something of an inheritable gene, so the next generation will have the original amount. This would solve the problem of the depletion of essence, but you would have to make sure a steady line of heirs. I also think when you have used up all your essence you should die, because essence is your life force and when its gone so are you. I agree with most ideas like Annatar's and Deminsky's (sorry if it was misspelled). Something I think would