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When a realm has accumulated enough Victory points, it allows them to take over their opposing army's area until they can accumulate enough VP to push the front lines back.
In addition to having a direct impact in a specific tier, a portion of VP from within a tier trickles up and helps its proceeding tier. So in essence, new players in Tier 1 doing quests, killing bears, accumulating VP, helps pushing the front lines for their realm's Tier 2 and so on and so forth. VP ensures that no matter your level, no matter what you do, you are helping the war effort.