When Phran saved the party from the attack in Goblin Forest, he shared his understanding of the world with the goblins’ Chief Bug. Humans and the other races respect each other, so they don’t kill each other. The goblins needed to become respected in order to stop being killed. Bug accepted this logic and, with Phrans’ help, built Goblintown. Bug made sure the goblins and kobolds of the forest did not attack people, and Phran coached them on the proper ways to deal with them. Soon, goblins and kobolds were guiding travelers through the forest instead of ambushing them.
Phran made contact with Edmund Browncott in Golden Hills, who recognized him from his travels with the heroes. Soon, Phran had made a trade agreement with Edmund, and was named ‘Ambassador to the Human Lands’ by the other goblins. Now, he rides to Golden Hills and back every week with a shipment of goblin-made bone sculpture (animal bone only, he swears!) and comes back with nice clothes, art, and wine. Some goblins even stay to serve as guards and laborers. They can’t lift as much as the bigger races, but they definitely take up less space.
The goblins of Goblintown face some prejudice still, but have made lots of progress with Phrans’ teaching. Many people who’ve been saved by the heroes hear about the wonderful town sprouting up in Goblin Forest, filled with peaceable goblins and kobolds.