Factions are the closest label to a nation state on Nyx, complete with a governing body. They can be part of a confederation or operate as their own independent entity.
An example of a faction part of a confederation is the German Empire, which is under the Bark-Howt confederation.
Likewise, an example of a faction that governs as its own entity is the Slovian Kingdom (Not to be confused with the Kingdom of Slovia, its Arc/ArcNyx counterpart).
Factions are mostly based on its own spoken languages, though this is not mutually inclusive. This means that a faction like the German Empire would mostly operate with the German language, but also includes a minority of other languages.
They are also complete with their own government, centralized or not, with a form of economy used to fund military projects, construction, agriculture, trade and more. They also partner up with local or international organizations for expansion, provided they have good track record and have sizeable equipment and investment.
Governments and elections
Faction governments do host their own elections and referendums, but mostly for major projects or research initiatives such as seismic monitoring, underground constructions, or infrastructure. A government election is rare, but has happened before due to corruption or inadequate governance. There is typically no schedules for elections.