The current patch has added the mechanic that when a faction wins a territory war on one of the Sky Islands, a Lord will be appointed to rule the Island they conquered.
"The latest Frontier update, the Highlord System, raises the stakes of every territory war. The winning alliance will be granted command over their island and will gain several advantages over would-be invaders. With the help of a special NPC, the Territory Development Adviser, the alliance leader can initiate quests on the island for the collection of required resources or the defense of strategic locations," states the developer, "Someone has to pay for these upgrades, so it’s also up to the Highlord to set the taxation level of their island, in order to finance the defenses. How far will Highlords go to protect what is theirs?"
Gamers can check out the Highlord system on the official site.