Factions play an important role in Pirate Dragons as they are the towns where you can trade goods, upgrade ships, and learn new skills. There are four factions created randomly at the start of a new game. Each faction will have distinct colors and a faction symbol that is displayed on their flags and their ships’ main sail.
The factions are created after you’ve chosen your faction colors, style, and symbol. The AI factions then use the remining choices, so they’ll never use the same options as you’ve chosen. Factions can have different personalities – some may focus on trading goods, others may be quick to go to war, and others may take it upon themselves to rid the world of pirates. How aggressive the factions will likely be something you can set before starting a new game.
Once in the game, you’ll be able to ally with a faction or set out on your own. Your reputation with each faction will depend on how you interact with them. Attack and destroy a faction’s ships or pirate their cargo, and you’ll make an enemy pretty quickly! At the same time, you may make a new friend if two factions are rivals.
You can increase your standing with a faction by completing quests, destroying or pirating rival faction ships, or trading goods with them. The more a faction likes you the better prices you’ll get when buying goods, repairing your ships, or training in new skills. High faction standing will also unlock new quests and other rare rewards. If you partake in piracy, some factions may seek to hire you while others will send fleets to destroy you!
Source: Indie DB