Why thank you but I'd just say that it's a good compromise (yes once in a blue moon we Lurians are actually capable of that) between the representatives of LV (Madigan) Solaria (surprise: Solari) and LN (myself). This is how it works:
1. You have the Emperor. The Emperor is a ceremonial position that goes to the most physically strong Lurian, i.e. the one who defeats the old Emperor in a duel till surrender (this can escalate into a duel to the death in some cases). There are some requirements for being allowed to challenge the Emperor though, like support of a Lurian Ruler or Duke. In spite of his ceremonial position, the Emperor does hold one vote in the Lurian Council.
He may reside in the Imperial Palace reserved for him in Askileon.
2. The Imperial Chancellor. Where the Emperor is the summit of physical prowess the Chancellor is the peak for those who thrive on politics. He is the head of the Lurian Council and is elected by the Lurian Rulers. If they can't reach a compromise after a while, it goes to the Dukes and Lords of the Lurian realms. He has a vote in the Council that counts double in case of a tie.
3. The Lurian Council. Each Ruler of a Lurian realm has a seat in the Lurian Council, joined with one other dignitary from his realm. Aside from those there's the Chancellor and the Emperor as full members and then there's each government member from those realms who are spectators.
Most power of course resides with this Council so it is a pretty decentralized Empire or confederacy if you like but I doubt it'd survive a day if it was a centralized state. Though whoever knows how it will evolve... 
It is built with the intent of stable cooperation but I can see some opportunities for armed conflict in it myself... which is how it should be.
It is currently being ratified and I sure hope that it'll be implemented soon. As far as I know it's a first in BM so it's pretty exciting to see how it'll turn out.
Applause and pats on the back all around. I, likewise, can't wait to see how things turn how - particularly because it brings LV into more Lurian politics and we could always use more excitement. But also because it opens up a whole new arena for the Lurian pastimes of
backstabbing and scheming cooperation and altruism.
But how much fun is it going to be for them playing in a realm of just three people?
I guess that entirely depends on them. I know that Pian's King had some good ideas and I think that as their role as stewards of the Confederacy and laws becomes more developed and refined, so too will the style and pace of the realm. If - through negotiation - they get some land back, even better.
That depends - it could be lots of fun if they are on the Lurian Council and they enjoy politics. It's not like there's not a lot for three people to do to keep a whole realm running anyway, even if it just one region. Just making sure the city stays fed promises to be interesting.
I'd also consider founding pan-Lurian guilds and/or secret societies, and in general ensuring the centrality of the city to Luria as a whole. Hosting a lot of tourneys is one way to do that. Creating a tradition of hosting the other Lurian rulers in person for certain council functions is another. Could be a lot of fun for a few active players if you ask me.
This. The Council's guild has already been founded in Askileon and a meeting was called for all representatives to meet at the city-state for the first meeting/elections. That should go a long way towards cementing the city as the 'Lurian Capitol'.
