"Since there is the merit system, there will also be a Demerit system. Unlike the Clan tier system which requires multiple individuals of a certain standard to move forward, the Demerit System makes it so that even one person who commits terrible deeds can bring an entire Clan down.

"In addition, even if this person to ostracized and disowned by the Clan, the Demerits they earn won't disappear, instead, they'll be cut to a tenth. Meaning, if you allow a traitor to your Clan to run free for too long, they'll eventually accumulate enough Demerits to cause your Clan to fall in ranking!"

Dyon's words caused the leaders here to suck in a cold breath. What a harsh Demerit System!

Dyon had been witness to too many debauchee bastards who committed terrible deeds only for their powerful fathers and mothers to cover for them. In this way, even their fathers and mothers wouldn't tolerate their evil deeds. Even if a Clan only had a single debauchee, it could bring them all down!

In addition, Dyon forced them into policing their own Clansmen. With this sort of incentive, it would lessen Dyon's burden. This way, he wouldn't have to chase after every bastard his Kingdom produced. In addition, it would also incentivize Clans to have their own strict policies, lessening Dyon's burden even further.

Of course, he was under no delusions that this would fix everything. There would be no shortage of Clans that did their best to hide and cover the bad deeds of their own, hoping it never reached the public eye. If they managed it well enough and it never came to the light of day, they obviously wouldn't earn Demerits.

No system could be perfect, but Dyon could only do his best.

Since Dyon could only ignore this flaw for now, he began expounding upon the Demerit System.

Most of the things he said didn't shock the Clans very much. For example, rules against rape and murder were pretty standard. It was obvious that they would earn severe Demerit Strikes for such a thing. But, what surprised them were the many refined smaller details Dyon added.

For example, when Dyon reached the possible Demerit Strikes one could earn in the field of commerce, he included severe penalties for commerce warfare. This included examples where larger, more established stores or businesses tried to force monopolies on certain market shares.

If a business owner was found drastically lowering their prices to force small businesses into a corner, they would face Demerit Strikes that would also be attached to their Clans. In addition, if business owners were found price gouging in an alliance, they would also face strikes.

These sorts of matters were unheard of in the martial world where such commerce warfare was a day to day occurrence.

With this introduction, Dyon also introduced a similar ranking system for what he called Business Empires. 9th Tier Business Empires could even receive exclusive contracts with the Sacharro Clan, gaining a great advantage over their competition.

The introduction of Business Empires caused Erea's eyes to light up with a faint glint of hope. The entertainment sector would without a doubt be an incredibly important market. In the martial world, there was almost nothing men, and sometimes women, loved more than to spend time with beautiful women. Although she might have found this beneath herself in the past, she was obviously very desperate at this time.

As things stood now, she had the largest collection of beautiful women in the entire Soul Rend Universe. If she took advantage of this head start, she could carve out a place for herself.

Though nothing in the Demerit System forbade prostitution, this wasn't the lane Erea planned to take. That said, Dyon heavily regulated this potential brothel system. He felt that since prostitution would likely occur anyway, it was best if he at least set the conditions such that the women forced into such a way of life were protected. This was something Erea appreciated and it was Dyon's very words on the topic that made her stop sulking.

This meeting would birth the Yin-Yang Pavilion of Soul Rend Universe.

"Now that you've understood the Merit and Demerit System, you should understand what benefits they give you and what you stand to lose.

"1st Tier Clans are allowed one 1st Tier Official. A 2nd Tier Clan is allowed one 2nd Tier Official and two 1st Tier Officials. A 3rd Tier Clan is allowed one 3rd Tier Officials, two 2nd Tier Officials and four 1st Tier Officials.

"This pattern continues until Noble Clans are allowed 1 Noble Official Title which is the only title hereditary in nature, two 9th Tier, four 8th Tier, Eight 7th Tier 128 3rd Tier, 256 2nd Tier, and 512 1st Tier Officials.

"Of course, it should be noted that while this is the number you're allowed, whether or not you have the number of qualified Clansmen to fill these positions is another matter entirely."

These numbers might sound unnecessarily large, but one much consider that Dyon planned on controlling several universes at once. Even for a single Planet's population, this number was a drop in the bucket. So, in reality, Dyon might have picked too few.

Still, for now, he felt that this would be enough for now.

"Officials have many perks. Not to mention the fact they have the right to vote on certain matters during the Mortal Meetings, these perks extend outside of these walls as well.

"For one, they're allocated a great amount of resources. Even 1st Tier Officials will be awarded with 1 celestial stone worth of resources a month. As for 9th Tier Officials, this increases to 1 enigmatic stone worth of resources a month."

The hearts of those who heard these words palpitated. But, Dyon's next words threw a bucket of cold water over their heads.

"However, don't even dream about becoming a 1st Tier Official without first entering the celestial realm. This standard will only rise as time passes on. Within 1000 years, the system will be as follows:

"1st through 3rd Tier Officials must be Peak Celestials at the worst. 4th through 6th Tier Officials must be Dao Experts. 7th Tier must be Middle Dao Experts, 8th Tier must be Higher Dao Experts, while 9th Tier must be Peak Dao Experts. As for the right to gain a Hereditary Title of Nobility, your Clan must produce a Higher Existence!"

Those Leaders here half wanted to complain about the standards being too high once again. But, when they saw the staunchness in Dyon's eyes, they could only swallow their words.