Around 12 centuries ago the last heir of the House of Querlin, Kiylian Reyn ended the monarchy in a peaceful transfer of power, the house had taken out excessive loans and was in a lot of debt.
The guild leaders wanted their debt repaid and noticed the people losing faith in the monarchy, thus they approached Kiylian with a offer, he would be relieved of all the debt the house had gained over the centuries, in return he had to end the monarchy.