Enmasse just released details of the new political system in TERA Online. The lands of TERA are divided up into territories that elected players called Vanarchs can control. In order for a player to be elected into the Vanark position is through an election system held ever so often. The players in the territory have the right to vote on whether or not a certain player gets the opportunity to assume the position. However diplomacy is not the only way to achieve rulership, players can also become Vanark through domination and arena combat in each region. Tournaments are held and if a players team is victorious then the team leader is elected as Vanarch.
Some of the responsibilities/actions a Vanark can perform while in power are:
Raising and lowering taxes in shops - A Vanarch can choose how much players have to pay extra in shops within the territory. The extra income from these taxes is paid directly to the Vanark.
Enable or disable open pk - A Vanarch can choose to enable or disable open PVP between everyone in the territory.
Open special NPCs to the public or keep them private - A Vanarch can choose to allow everyone in the territory access to special NPCs with rare weapons and other craftable items or keep them for himself and his political party (guild in TERA).