A decentralized chieftain-based system eventually evolved into a more centralized economic and religious culture centered on Pohnpei.
[3] Although small-scale and informal, the Empire per se was formed when what is now known as Gagil Municipality through the chief village of Gatchaper, developed and maintained a maritime trade and political network with smaller atolls and island groups between Yap and Chuuk, covering over approximately 1,500 kilometres (932.01 miles) of the western Pacific.
Through a relationship known as sawey, the Empire demanded tribute known as Pitigil Tamol to be given to the paramount chief of Gagil in Gatchaper.
In return, Gagil would reciprocate with mutual support from the main island in case of natural emergencies as well as goods.
Yapese traditional society before foreign colonial administrations was divided into multiple villages and municipalities and is highly feudal in nature.
Each of the current one-hundred twenty-nine (129) villages of Yap are organised into single units based on the class system depicted below.
These chief villages and their municipalities are referred to in Yapese as "fare dalip e nguchol", which means "the three cooking stones".
The Saudeleur centralized form of absolute rule is characterized in Pohnpeian legend as becoming increasingly oppressive over several generations.
German efforts to reorganize the traditional social hierarchy and recruit forced labor for construction resulted in a rebellion by inhabitants of Sokehs Municipality in 1910.
Yap was a major German naval communications center before the First World War and an important international hub for cable telegraphy.
[17] In World War II, Japanese-held Yap was one of the islands bypassed in the U.S. "leapfrogging" strategy, although it was regularly bombed by U.S. ships and aircraft, and Yap-based Japanese bombers did some damage in return.
In February 1944, Operation Hailstone, one of the most important naval battles of the war, took place at Truk, in which many Japanese support vessels and aircraft were destroyed.
World War II brought an abrupt end to the relative prosperity experienced during Japanese civil administration.
The FSM signed a Compact of Free Association with the U.S., which entered into force on November 3, 1986, marking Micronesia's emergence from trusteeship to independence.