For most of the last century, the Freespacers were a mostly peaceful people. Their hard lives left little room excess and waste, be it material wasted on physical luxuries or lives wasted in political conflict.

However, the events of Freespacer Massacre and Related Battles changed this: after being cut down in large numbers by the Yamataian imperial warships, many Freespacers came to believe that their previous lifestyle was simply not practical in such a dangerous galaxy. This is the origin of the schism.

This group is composed of traditionalists and others who reject the bleak outlook of the other Freespacers factions. They sued for peace with Yamatai, and have reclaimed their former planets and territories of space. As a result of the genocide they have garnered a massive amount international support, and rely on this and the protection of other races to guard them now and in the future.

Since the first genocide, there has been at least one threat of a second genocide from the military branch of the YSE. But thanks to the international public outcry – particularly Nepleslia's pledge of military protection – and efforts of moderates in the Yamataian government, an era of peace (albeit, an unsteady peace) continues to this day.

In the days following the genocide, a number of vessels took refuge in the Blue Rift Expanse. Normally this would be considered fool-hearty and suicidal, but with the threat of certain annihilation at the hands of imperial warships, many considered the Blue Rift to be the less riskier choice.

A number of vessels not only survived, but have managed to setup permanent pockets of normalized space using technologies and techniques they pioneered based on their experiences. A number of gateways now link these pockets together, allowing FTL travel in what would otherwise be a FTL deadzone. Those within surviving using a combination of energy harvesting and stolen mass synthesis technology makes long-term habitation viable despite the lack of resources within the Expanse. Many Freespacers now live within or near the Blue Rift Expanse due to the fact remains one of the only natural phenomena that can keep imperial fleets at bay.

They remain highly skeptical of Yamatai's offers of peace, particularly following the threat of a second genocide. Ships will usually flee if they detect an imperial ship, but will stand and fight should one approach the entrance to their gate networks.

Among those who resent Yamatai for the events of the genocide, there are some who choose to fight rather than flee. These brave souls join organizations such as The Guild of Cyberempathy or more typically, the Independent Worlds League. Some simply take the opportunity to actively undermine the empire's efforts whenever an opportunity should present itself, while others are actively attempting to remove the royal family from power.

Believing long term peaceful co-existence is unlikely, and fearful the long-term effects of habituation within the Blue Rift Expanse, they have chosen to simply move their nomadic fleets further into the depths of unexplored space using FTL drives. Contact with most of these fleets was lost once they passed the maximum range of contemporary communications technologies. Their fate is unknown.

A number of Freespacers, particularly those whose fleets were destroyed or disbanded due to high casualties, have chosen to simply give up the nomadic life style. They now form independent communes of farmers and miners on many of the “unclaimed” worlds in the galactic north – or have otherwise joined such pre-existing communities of Geshrin. Many live simple lives and couldn't care less about events outside of their world, but maintain local militias that will defend themselves from pirate raids or attempts at annexation.

Amid the chaos of the genocide and the schism, there was an unusual proposal by a number of high-level SI and AI: They wanted to form a benevolent dictatorship by scientists, with the end objective to form an economic and industrial superpower which could provide security against outside threats by means of military might. Simulations have shown this would be the fastest and most reliable method of protecting Freespacers from attacks by outsiders, Yamataian or otherwise. However, it was overwhelmingly unpopular to the fact it required the surrender of personal liberties and destruction of culture to form what would effectively be a police state.

Some have since begun experimenting with this idea on a small scale, creating city-sized enclaves using only nonvolitional machines. This is tolerated because it provides the rest of the Free State with the large industrial output needed to help rebuild the Freespacer fleets.