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After the collapse of Elantris due to the Reod, the merchant class rose up as the most powerful and wealthy citizens, and overthrew the former government.{{ref|b|Elantris|c|6}}
The merchants then became the new nobility, the capital city moved from Elantris to one of the surrounding towns, [[Kae]], and the head of the merchants guild [[Iadon]] was crowned as king, the new government ruled that someones nobility was directly tied to their wealth, which lead to the reinstatement of a form of slavery of the peasant class as all the nobles struggled to gain more wealth and so rise in rank.{{ref|b|
This system of government was incredibly unstable and it is believed that even without the [[invasion of Arelon]] the government would soon have collapsed.
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