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Rome became a true republic again and was more democratic than ever before during the Empire. It is also worth noting that Rome was no longer the capital of the Empire, and the capital became Mediolanum (today's Milan) from 286 to 330 AD. To achieve economic stability, Diocletian implemented important tax reforms.
Diocletian adopted many Eastern customs that were unusual in Rome, such as the practice of people bowing down to him in his presence and wearing jewelry and golden sandals. He is also remembered for his persecution of the Christians, who were seen as a threat to the political order. In 303 AD, he ordered the destruction of all Christian churches and scripts, and the practice of Christianity was punishable by death. Diocletian resigned in 305 AD, becoming the first Roman emperor to do so.
Constantine is mainly remembered for converting Rome to Christianity. In 313 AD, the Edict of Milan allowed Christianity in the empire and all Romans were free to practice this religion. Other religions were allowed, but Christianity received preferential treatment and various privileges. Constantine himself converted to Christianity and even enforced the Christian faith throughout the Empire.
He also made a bold move by changing the capital of the Empire. He rebuilt Byzantium, renamed it Nova Roma, and made it the center of Christianity. The city, however, quickly became known as Constantinople ("the city of Constantine" in Greek). Constantine made important changes in the economy, such as dramatically increasing taxes across the board. However, the currency, the solidus, became stable, and the economy began developing again.
Towards the end of this dynasty, Rome lost some important battles. In 363 AD, in the Battle of Samarra, the emperor Julian the Apostate lost against the Persians and was killed during the battle. Emperor Valens (reign: 364-378 AD) lost his life in the Battle of Adrianople in 378 AD against the Goths. This weakened the Roman Dominate as the Goths were never expelled and never became integrated into Roman society.
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In 402, Ravenna became the capital of the Western Roman Empire. General Stilicho, who had Vandal origins, served as regent for the underage emperor Honorius. Stilicho had many victories and sought to reunite the empire but was removed from power and executed in 408 AD, partly due to military disasters despite his previous successes. His execution weakened the army and led to the Visigoth invasion and sack of Rome in 410 AD (although Rome was no longer the capital).
A group of barbarians led by Odoacer, who were inside the Roman army, made demands to Roman General Orestes. When the General refused to meet their demands and tried to expel them from Italy, Odoacer went to war with Orestes and killed him. Odoacer then invaded Ravenna in 476 AD and removed Romulus Augustus, son of Orestes, from power. This event marked the end of the Roman Dominate and of the Western Roman Empire.