Factions are one of the major aspects of the game. When you first join Galaxy, you are greeted with a menu to create or join a faction. The player who creates the faction will get to pick the colour and name. There is a maximum of ten factions per server (Five for Galaxy Arcade) and factions cannot be created during Endgame. Factions are able to war each other or ally with each other. Each faction comes with its own Starbase. If all Starbases that faction owns are destroyed, it is defeated and that team is removed.
The player who creates the faction is the leader. This gives them permissions to upgrade their Starbase(s), declare War, make peace, and propose Alliances, as well as other faction management options. After the leader leaves the game or faction, another player is selected leader at random, or the leader can appoint someone else as the leader to take their place.
Starbases need Credits to be able to buy materials and be upgraded, they are generated automatically from negative taxes or the base's own income, which is earned from territory. A base can reach negative credits if people dump enough Ores.