Istio was conquered by the Empire in 284 ATC after nearly a century of tense relations between the Istian oligarchy and Emperor Gallus. The old families were put to death if they did not submit, and the government was dissolved. A buyback of all Istian coinage was instituted, offering 10% over the coins value in Imperial gold. All coins were melted down and re-separated to be added to the Imperial Treasury as silver and gold bars. Perhaps coincidentally, perhaps as a tactic by the Empire, the northernmost and largest island of Istio was beset by an undead invasion near the end of the Istian-Imperial war. Istian military forces were already overwhelmed dealing with the various sieges and island strongholds of the Empire that only a token force was dispatched to push back the undead hordes coming from the eastern seas. Those forces were overwhelmed in short order, and the undead swept across the island like a plague. No one knows if the lich in charge orchestrated the attack or was created as a result of it, but these days the island is referred to as the Island of the Dead and is completely infested with the shambling corpses of its' former inhabitants.
Undead Attacks: Occasionally groups of undead will wander into the water and attack Southern Emporio or another nearby town, but the Imperial military presence is large enough to turn them back without too much trouble. Since the attacks are so rare and the island offers little natural wealth in proportion to the number of undead present, the Emperor has elected to simply let the island be. Adventurers will land on its' shores every now and then, looking to loot the long-dead civilization, but few are prepared enough to survive. After these expeditions set out, a notice is sent to all lighthouse keepers to keep an eye out for an unmanned boat drifting to shore, as the smarter undead will use these vessels as Trojan Horses, attempting to launch an invasion of the neighboring islands.
The Lich: Consensus among religious and arcane scholars tend towards the theory of a single ruling head of the armies of undead, typically assumed to be a Lich. Where it is, who it was, why it attacked, and why it doesn't invade anywhere else en masse remains unknown. Some believe the horde to simply be aimless, a result of some freak accident involving the Precursors and the former pirate-infested east coast of the island. Many of these scholars continually petition the Imperial Senate to send a large group of Blended in to assassinate the Lich, but are always vetoed due to lack of intel on the presumed Lich's whereabouts, poor return on investment, and general cost.
Istio is the eastern-most seat of civilization on Feredas. Ruled by the 7 wealthiest citizens, this island nation is run almost like smaller, distinct provinces as opposed to a single, overarching government. The ruling body is called The Council, and the seats are determined by an audit of each houses' assets at the end of each year. If you are no longer in the top 7 richest families, you are ousted by the one who is. The nations military is feudalistic, with each family having their own private armies that will group together when the need arises. With wealth directly correlating with power, it is widely accepted in this society that everyone is out for the almighty coin. It is not a sense of shame or pride for anyone, it is simply a fact of life that accumulating wealth is the primary motivation of almost everyone. In times of crisis, all members of the council will elect an objective leader to head all of their armies, in order to ensure cooperation. This High Marshal will be someone who is unrelated to any of the ruling families to make sure that there are no favorites played with any one houses' armies and everything is run as one large cohesive army. Once the crisis is dealt with, the Marshal will voluntarily step down and everyone will return to their respective houses.
Istio is an island nation and as such, has a very strong maritime tradition. Being a sailor is considered one of the most honest and solid career choices a citizen can make. Many young boys who can't find work, were orphaned, are homeless, or suffer some other tragedy can find work as Midshipmen; boys who are given a place on a ship to train for a life on the seas. These boys typically do grunt work such as cleaning, ferrying, and counting while they are taught how to operate the various parts of the ship. Older boys will be allowed to cook, read charts, tie knots, and operate smaller parts of the ship to gain a working knowledge of their new home. These wayward children are given a home, a family, a meal, and free experience in exchange for free labor.
There is no true organized military in Istio, as all naval and ground forces are paid and operated by the various merchants who can afford to do so. It is considered traditional and very respectable for influential families to send at least one of their children off to serve in the military, showing the common people that they are not the exception to the rules they make. Upon declaring a Crisis, a High Marshal is elected by the Council, usually taken from the graduates at the Leon Academy. The Leon Academy is comparable to a real-life Westpoint, serving as a sort of military college, giving career soldiers the leadership and tactical knowledge they need to advance in their field. The vast majority of soldiers are sent to the mainland, occupying various forts and keeping any orc or goblin intrusions at bay.
Just like the army, there is no true Istian Navy. Every ship is owned by a trader, guild, or some other entity that can afford them. Each usually flies an Istio flag, as well as a flag representing the organization/individual that owns it. In times of Crisis, the High Marshal will have control over these assets as well, with harsh sanctions, fines, and punishments threatened to any who refuse the call to war. The Council does have the power to form temporary fleets during non-Crisis periods, with the understanding of the captains involved that the organization is temporary, with an open and clearly defined objective.
Istio mints its' own currency, accepted as a standard among all the merchant families. Istio is fairly poor in gold and rich with silver, so their main coins, called Talents, are made of electrum; a silver-gold alloy. These large coins are worth half of a standard gold Royal or 5 standard silver pieces. Many merchants prefer Royals since that is the more widely accepted currency across Feredas, but Talents have become more and more accepted across Feredas as traders bring them farther south.
Of special note is one of Istios biggest and most fiercely competitive exports: The moltings of the Softshelled Clacker. These exotic, large, pink-hued crabs are the sole supply of a single extremely popular commodity: the healing potion. Once a month, these docile creatures molt their shell, discarding it and growing into a larger one. These discarded bits are gathered up by the owners and ground into a fine powder. This powder is sold at a premium to shops all across Feredas, to be suspended in water and sold as the always-useful healing potion. These crabs can only live on the western shores of Softshell Island, as they get sickly and lethargic (eventually dying) if brought anywhere else. Due to this nature, any merchant family with a stake in this industry fiercely guards its' holdings on Softshell Island from pirates, rivals, predators, and poachers. Many would-be entrepreneurs have attempted to alter the Softshells' diet to produce differing effects in their resulting potions, but every attempt has either caused a fatal reaction in the creature or a completely mundane and useless molting. As it stands, these creatures need to live in one region, off their natural food supply, and left to naturally molt. Any alterations have produced undesirable results.