What kind of corals are you thinking of propagating in this tank? The other major factor would be water circulation. Softies might do ok in a tank like this, as they don't need as much current, and use photosysnthesis as thier main food source. Any corals that need supplemental feeding or strong current to deliver nutrients to the polyps may require a more elaborate setup. The upside to this setup would be that there is no pollution being added by fish. A lot of people have a second tank connected to thier main tank for propagation tanks, and I've also seen people with trays setup for frags in thier main tank, but this can detract from the aesthetics of the tank. I plan on getting into propagation also, but will be using my refugium as a growout tank.
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Please respect the natural environment that makes this hobby possible. Be responsible and be informed. Support aquacultured/tank raised species.