After the Empire’s fall, the Gnomes attempted to carve out a corner for themselves in what is now northern Carthia, and tried to stay out of the way as the humans made war against each other. However they were nearly wiped out by increasingly organized raids by orcs and giants, remnants of Athrintalec’s army. Realizing that the ongoing chaos was going to allow the enemy time to regroup and reconquer the lands, the Gnomes resolved to end the war.
They sent emissaries to all of the warring factions, and to the isolationist groups as well, urging an end to the conflict. To that end, they drafted the Red Blade Treaty, which would establish national borders and create an international advisory panel, called the High Council. Their first proposal was rejected: many accused the Gnomes of deceit, claiming that the treaty would favor themselves at the expense of all others. To refute this claim, the Gnomes gave up not only their voice on the Council, but also the borders of their own nation- forsaking their own fortunes for the hope of peace.
The revised treaty was accepted and the War ended, after 45 years of conflict. Although they gave up their sovereign rights and any direct influence over the Council, most kingdoms reognize the massive effort put forth by the Gnomes, and they are welcomed gladly by most citizens and even royal families. As a result, Gnomish populations can be found throughout Tolgalen and are often treated with great respect.