The Merchant Republic of Thalon was officially established as a nation in the Age of Divinity, entering the Time of Ages. The region previously consisted of several independent city-states that had seen substantial growth following the fall of the Old Imperium. At first, these city-states were at odds with each other over minor disputes of territorial expansion and political dislike. The many cities were then united under the leadership of Umber Balfon, who proposed the Treaty of Unification. Under this treaty, the cities formed the first merchant republic in Arganorh.
The main reason Thalon was to become a nation of traders was because of the efforts of Umber Balfon, as well as for the strategic central location of the nation. Umber Balfon realized the locational value of Thalon, which he took advantage of to ensure international interest in the nation.
Additionally, Thalon was, and still is, a region of fertile soil and green; thus boosting its agricultural and foresting output. The lands east of the Old Imperium were still wild and mostly uninhabited by humans, and thus there was a great need for grain and other necessary goods for the establishment of new settlements in the east. With few existing nations yet able to support themselves with food, Thalon's over-abundance of goods would see it steadily grow as more and more settlers traveled eastwards. Eventually it was to become the wealthy nation it is to this day.
Thalon is perhaps the most influential and wealthiest nation in not only the twin continents, but the entire world. As a nation of trade, Thalon has established several trade posts, headquarters and merchant organizations throughout the world. It is the home of the League of Coins, which is the leading supervisor in matters of trade, value of goods and general currency. Many other merchant organizations also maintain then headquarters in Thalon, some of which are of foreign origin.
The ruling circles in Thalon are the Green Council and the Trade Princes. The Green Council holds members from the various regions and provinces in the nation, who then decide on matters of national importance. The Trade Princes govern these regions and provinces, and a majority of those princes hold positions in the Green Council. The relation between these Trade Princes is rather competitive, and they often try to outdo each other in a variety of things, such as wealth, owned trade routes, owned ships etc.
While mainland trade is profitable, Thalon draws its main wealth and power from its merchant fleets and trade with distant nations. There are several thriving Thalonian colonies, and the most prominent ones can be found on the western continent of Ashanor and on the eastern continent of Korasha. During the Age of Seas, Thalon was one of the first and most active nations to colonize the new world. As a result they have profited greatly from this, and their colonies are some of the most developed of all the colonial towns that were settled and established during the Age of Seas.
Mainland Thalon is the foremost province of agriculture, forestry and general trade. But the Isles of Kerk, a somewhat gritty and underdeveloped gathering of steep-cliffed islands, is the nation's greatest income of mining and fishing, and to some degree shipbuilding. Kerkmen are renowned for their stature as skilled sailors and fishermen, yet they are not considered to be as socially civilized as those who live on the mainland. There is a clear divide between the Thalemen and Kerkmen, as the two do not always get along very well.
In terms of warfare, Thalon is by no means one of the greatest offenders. However, as the wealthiest nation, they can afford to spend more than most on top-quality armour and weapons for their soldiers, and they boast an impressive number of skilled craftsmen. Thalonian crafted armour and weapons can be found almost anywhere in the world, and the quality of their wares are evident in the masterful craftsmanship these wares have gone through.
Thalon is also the home of the Balfon Bank, which is an international bank controlled by the League of Coins. The Balfon Bank allows many foreign parties to put up a loan, though it is wise to be careful when doing so. Failing to repay the loan within the allocated time will lead to an increase in rent, and if the following repayment after that is not honoured, the Balfon Bank will activiely do whatever is necessary to see its coins returned. In their employ are the Hoodmen; an organization of debt-collectors and enforcers, dedicated to the rightful return of their employers' money. This teaches one important lesson in regards to the Thalonians; they will always see their coin earned, at whatever cost, regardless of the methods used.