The world surrounding Undo mountain, at who’s peak resides the Crystal Palace, is comprised of three city states wherein the gods reside. During the Ascension wars, which last 3 years, Gods try and gain territorial advantage over the other states. The Gods themselves do not take part in battles, but rather act as the conduit of magic and power from their thrones in the capital cities.
For a god to win, he gains control of the Crystal palace, so he is then “king” over all of the Undo mountain area, including the other city states. Ask godking, the ruling god makes policy and gets tribute for that period of time where he rules. The world responds to the character of the god, growing more like their personality. If Kord rules, valor and chivalry become more prominent in the realm, and tournaments and gladiatorial combat to prove prowess become the pervading social activities.
Over arching, at the end of times, the god that has ruled the longest and the best becomes the prime god of heaven and earth. Thus, the fighting is sort of a preparation for who has control over Valhalla at the end, and the warriors who serve best have places of honor in the afterlife.