Underhand
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This information was collected purely by observing and experience and isn't technically proven yet.
At first, we need to realize that there are two types of events: regular events and event chains. Regular events are usually recurring while event in chains usually gets replaced by the next event from the chain.
We can sort events to groups by the way they are added to the deck.
When the first deck is compiled, at first, summoning events are added dependently on which gods you have already summoned. Then blessings you have selected are added into the deck. As a last thing, some random events are randomly selected and added as well.
Punishments appear randomly as a reaction to you actions.
In Underhand, there are three decks, as you can see on the picture. You have the base deck, that cards for this round are drawn from. Then you have the discard deck, that gets shuffled and becomes a new base deck, when the actual one will be empty. That means all the recurring events and all the 'Inserted' events are going into the discard deck. Finally, we have the perma discard deck. Events are sent here, if they are not meant to appear in deck for the next round. If event got perma discarded but is 'Inserted' again, it simply gets remade, for the perma discard is not kept.
If you are making progression in Summoning event chain, the current event goes to perma discard and the next event gets added to discard deck .
Punishments can get directly inserted to the base deck on the current next position, while the condion for their inserting is being met, but they are inserted randomly, so you don't have to see them at all.
Special Punisment Wrath of Gods is inserted to the discard deck as a reactions to some options you chose in the game events. It is a punishing event, but it's not inserted into the base deck and it appears in the next one. This also leads to the option to of avoiding it by using foresight with discard.