The Terran Confederacy was established forty-five years after the unsuccessful Roxolan invasion of Earth in 2039.

The wreckage of hundreds of destroyed Roxolani ships were scattered across the planet by and in major cities of many different countries. The principles of hyperdrive and contragrav were easily deduced from the ruined ships and since cultures not far advanced from hunter-gatherers could build them, new devices were quickly designed and built. This led to a mad scramble to establish colonies on habitable planets within several hundred light-years of Earth regardless of native populations.

To bring some order to this expanding sphere of conquest and to avoid armed conflicts between human colonies, the Terran Confederacy was established in AD 2084. Eventually, a new standard calendar was established making this year one TC. However, the Confederacy was not wholly successful in preventing armed conflicts between human planets.

Expansion continued for the next two hundred years since the ease of construction of hyperdrives and and easy access to weapons that, while common for humans, were vastly superior to those of any alien species, allowed a disgruntled group on a planet to set out on its own. However, limits were reached, humans were spread too thinly and the Great Collapse occurred with much fighting between planets. Many human worlds lost the ability to maintain high technology societies and regressed to a pre-electric, steam power and black-powder muskets level or even lower.

Eventually, a few planets such as Loki regained this lost technology through their own efforts and by scavenging ruins on other planets. The Loki Salvage Service was created to continue this work and by c. AD 3240 Loki was on par with the most advanced Confederacy society.