According to IMPS Kingdom Lore, all imps in the world were divided into three factions (there will be more factions in future updates):
1) Empire of dawn;
2) State of Adari;
3) Magnus kingdom.
Every faction has its own cities and of course a capital, which represents the great power of the faction.
For the Players, being a member of the faction means the opportunity to receive a number of additional rewards for their activities. In other words, it's a Battlepass mechanic. Each faction has its own Battlepass and the player can buy membership from each of them and level up them in parallel. Also each faction has its own unique quests and bonuses for Players
Membership in every faction is bought for cryptocurrency, but the first faction is chosen by the Player for free at the start of the game and thus he gets access to the basic line of rewards of one of them.