We're well into Fight Club. We've had Round 1 (internally) and are opening things up to a few alliances we're friendly with. There's Gladiators, Bettors and Spectators. Adopt whatever role you like, just have some darn fun!
Yes, your nation will suffer some damage if you choose to compete. This is a game. We're supposed to have some fun, right? Why have a natoin in CN if you don't have fun? Some nations beating the snot out of each other (it's almost no holds barred, just nukes and blockades are forbidden) for the entertainment of the smart masses. Nations of any size can compete without fear of ZI, without fear of long term hard feelings.
It's also a way for players to gain experience in a fight or to learn from reading the battle reports of the Gladiators.