The last of the deserters leave Iserlohn. Reuenthal appoints many government officials as he settles as the new governor of the old alliance territories. Reuenthal plans to execute Trünicht for any suspicious actions. Phezzan merchants notice Earth cultists entering Trünicht's home. Julian ponders how Yang became the personification of the spirit of democracy. Julian also realizes that he must ironically acknowledge the effectiveness of terrorism in history to shape Yang's death into something practical. Katerose and Julian talk about Fredrica. On August 8th, Space Calendar 800, New Imperial Year 2, the Iserlohn republic is born. The population comparison is 40 billion in the Empire to 940,000 in Iserlohn.