Founding
After witnessing the dwarfs developing views towards racial supremacy, the elves abandoned the empire and established the realm of Valënor.
The settlers from the Unknown Lands had a dream; to build a new home where all people could prosper as equals. However, after the founding of his empire, and as Tolkien's forces continued to conquer more land from the different tribes and clans, his dream shifted. He saw the possibility of absolute control so that all of Germania could unite and prosper together. So, Tolkien and his top advisors and generals made expansive military plans, built heavily fortified outposts and focused all industry towards forging weapons, armour and other tools of war. To ensure efficiency, the people were re-settled and re-employed according to their ability and it was then where the elves and halflings began to lose faith in their leader. The dwarfs deemed themselves physically superior to the other two and thus were employed as miners, builders and warriors, while halflings were made farmers and elves put up with the rest. The latter two objected to this ruling, the elves more so than the halflings; they would not be treated as some second-class folk. When the emperor dismissed their objection, the elves abandoned the empire and moved south-west of its current border and established the realm of Valënor, or "Peacful Home" in the old elvish tongue.