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There's no point speculating about life outside of Mudos so we can't comment on overall population numbers. The human population of Nicaragua is only 5.6 million. When you take into account that muds are not the only sapient species in Mudos and are certainly not dominant, it is highly unlikely that there are as many as one million of them.
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Just becuase they are slaves doesn't mean Mudokons are not dominant in Mudos. Just think back to slavery in America, plantation owners may of been politically and economically more powerful then their slaves, but they were greatly out numbered.