In short – This will show you how much you spend your time in one territory or another. By doing quests in that territory will grant you territory exp along with gathering resources chopping tress or smelting metals! Anything you do actively in your territory will grant you exp to level your standings. Now there are many benefits to levelling your territory such as allowing you to own a house that isn’t a little shack, to decreasing trading tax from the market. This will become important as you progress through the game because you’ll need the decreased tax in order to pay for your possessions.

When you level up your standing, you’ll get a choice of 4 rewards to pick from.

Here’s the list below:

Increase territory standing gain,

Decrease crafting fee,

Decrease property tax,

House ownership,

Increase experience gain within territory,

Decrease trade tax,

Increase received faction tokens,

Increase gathering speed,

Increase territory storage,

Increase max house items.

So, each of these rewards will be for each Territory and you’ll be in a different level for them all so make sure you spread your time and adventuring so you can max it out asap. I don’t recommend doing the exp gain because after a few weeks you’ll be capped, and it will be a pointless trait to have in that territory whereas storage may become a must later in the game but because you made a mistake to fast track your levelling, you’ll regret it. You cannot respecc these points so once they are locked in that is final so don’t make the mistake of wasting them.