"The settlers of Iceland divided the country into 4 regions. Each region had 9 godord and the godord were divided into three things. The godord were divided into groups of three and each thing had three godord.

The word 'godord' has two definitions. Godord represented a group of men. These men gave allegiance or alliance to a specific godi. A godi is the leader or chief who constructed a place of worship for his pagan followers. The godord was also a collection of rights, the right to represent the law making body of Iceland.

David Friedman states, "…seats in the law-making body were quite literally for sale." These men who were law-makers did not have power just because they held the title godord. They were powerless "unless he could convince some free-farmers to follow him." This kept tyranny and injustice in check.

Jesse Byock states in his book that, "leadership evolved in such a way that a chieftain's power and the resources available to him were not derived from an exploitable realm." This was because free farmers could change allegiance between godi without moving to a new geographical location. "The legal godi-thingman bond was created by a voluntary public contract." The ability to switch legal systems with out moving, is key to a decentralized system. It creates secession down the level of the individual, making all governance structures formed truly voluntary."