So this is the flag of the Makoan socialist republic, a region based on Japanese culture/ aesthetics.

The lore here is that the flag was used to mock the imperial banner by having an aquamarine disc near the hoist (ruining the exclusivity of the color) and using a dark cerulean color, the exact opposite of the creamsicle orange of the empire.

The flag is based off of the flag of Laos http://en.wikipedia.org/wiki/Flag_of_Laos
And an older flag I had designed. I challenged myself to make flags and emblems for a socialist country without using any reds or warm colors, and I'm quite happy with the result. ^^