The video is part four of a five-part series, and features live TERA gameplay interspersed with commentary by the reporter and an unnamed TERA employee who drops several nuggets of information about the political system. Among them are the fact that the system currently features lordships and kingships. TERA's world is divided into regions that will be able to elect a lord via citizen vote and also via an unspecified PvP mechanic. Details on citizenship and voting privileges were sketchy, and it seems the system is still under heavy development.
Once a lordship is obtained, players may then apply for kingship, which also features an election mechanic and grants sovereignty over a particular city. Kings also control taxes and have an unspecified level of control over how monsters spawn in their part of the world. Check out the video after the cut or the full series at Glimpse Dog.