This is a good read to get caught up on the campaign setting. Public commenting has been enabled. please contribute to fleshing out PC/NPC info, events, and corrections.
Time is tracked and progresses constantly in Paradise Vale. This facilitates the continuing growth of civilization, adds realism and immersion to gameplay, as well as weight to player's decisions and actions.
Any day that an active session is schedule passes at a 1 to 1 rate. These numbers may change over time as a result of play testing, and balance adjustments.
Sometimes a party of PCs will begin an adventure in one session but require more than 1 session to complete it. In these cases, the PCs are considered to be in a separate instance of time. Once they complete their mission/quest and return to the settlement or a safe, stable location, they are reinserted into the main timeline of the world as fluidly as possible.
The things you do including leveling up, gathering resources, and building new structures for your settlement, take time.
A time skip occurs when the GMs and Player Majority vote to rapidly accelerate the speed of the in game calendar. This could mean 1 real world day is equal to a week, 2 weeks, or even a month. Sometimes even years can be skipped ahead with this method, though in this case there are still active in game sessions and book keeping that occurs.