The Communist Rebellion was the first rebellion in State history. Instigated by the Minister of Justice, Xinke Han, it encompassed nearly half of representatives from Parliament and the majority of the government sector. The group demanded a communist government after the Constitution was ratified, which made for a constitutional republic. Since it had been ratified by a narrow majority in Parliament, the Constitution passed but opposition culminated in the Communist Rebellion.
The majority of the members of the Communist Rebellion were members of Imperia who had previously rebelled against then Emperor Auel, and now King Auel. Still harbouring feelings of resentment for disbanding The Knights of the Round, Xinke Han and other representatives did not want Auel as the leader of The State. There was also heavy discrimination from the Imperian representatives towards the Prime Minister, mostly due to his origins as a Valikorlian. These combined factors led to growing tensions between the Prime Minister and the representatives, eventually culminating into openly insulting James Feare, the Prime Minister at the time. Eventually, King Auel kicked the rebellious members, starting the Communist Rebellion.
The Big Three wanted a controlled government where the general population would be able to suggest legislation, but would be unable to pass any. The communists proposed a form of government without a King or Prime Minister where every person had equal voting rights.
Auel and Viral rapidly expanded the military while Prime Minister James tried to subdue Parliament. With the communists declaring a Communist government, King Auel initiated the Martial Law clause within the Constitution, giving him absolute power over The State for three days. All communists were purged, and representatives of all member guilds either pledged their absolute loyalty to he State or were dismissed. Representatives were stripped of voting rights and are replaced with military personnel loyal to General Viral and King Auel, effectively erasing democracy from The State.
- Imperians were widely distrusted after the communist rebellion and were never given officer ranks or positions of power.
- The State went from an alliance of confederated guilds into a single government and military.
- The Big Three, especially the increasingly dominant Auel began to believe that democracy could not work in The State.
- The State Military became the major branch of The State with the loss of government bureaus. Government projects were regarded as pointless with the failure of the Ministry of Justice.
- The rebellion spurred the rapid expansion of The State Military in order to suppress any communists.
- Prime Minister James lost significant power with The State Parliament becoming effectively defunct. Power became highly concentrated in Viral and Auel, and later entirely in Auel after Viral resigned as General.
- The State was headed down the path toward militarism, dictatorship, and discrimination of any foreign ideas. Dissent of any kind afterwards was dealt with immediate exile to prevent possible spread of anti-state ideas.