Slayer Anderson rick1497 Albus Leo Bashful_Walrus
So for ease of use here is a summary of the setting and history being used in this game.
In the old days hundreds of years before present times the galaxy boasted several star-faring civilizations and a wide variety of races, the tech level was very physics compatible Faster than light travel didn't exist, Aura and Dust where undiscovered etc. The Tuffle race seeded the Galaxy with their genetics via fleets of slower than light colony ships, resulting in humans being a galaxy wide culture. Faunus didn't exist.
Then came the Grimm's arrival, the creatures launched a incursion spanning the entire galaxy, destroying species after species apparently set on wiping everyone out. Around this time the first Faunus appear apparently the result of genetic engineering. Faced with the threat of extinction the various peoples of the Galaxy banded together and through pooling resources discovered the means to extract Dust and awaken Aura. This allowed them to push back the Grimm though they remain a threat to this day.
Once the immanent threat of extinction by Grimm lessened the Grand Alliance start's to corrode. Various power blocks and empires form. Sometime into this period the prominent Star Empire of Mantle experiences a major Grimm assault prompting the adoption of a social model in which individuality and emotion were suppressed.
In time Mantle began to expand absorbing neighbor states and enforcing the doctrine of personality, among the largest of these acquisitions was the Empire of Anima. This expansion eventually provoked the Great War: a ten year conflict of unprecedented scale and resulting in renewed incursions by the Grimm.
80 Years ago the Great War ended. In the aftermath the Empire of Mantle was dissolved its core citizenship forming the Star Kingdom of Atlas.
The Planet Trade Organisation formed in the wake of the Great War, beginning as a organisation focused on finding and recovering worlds via forays into space the Grimm overtook during the chaos of the war and resettling them. Sometimes they find planet's overrun with Grimm and fight to cleanse the world, sometimes they find small bastion's of people holding out and either offer them resettlement or protection as a member race. Sometimes they find a world with high natural resources and grant the world to one of their member races regardless of the locals opinions.
Freeza is the current head of the Planet Trade Organisation and a monster in both Aura combat and personality who has encouraged some of the more unpleasant practices of the PTO. The Saiyans were the PTO's favored shock troops/disposable assets until Freeza killed them off for reasons of his own. Freeza's role in the Saiyan Genocide is not common knowledge. The Saiyans are a separate race from the Faunus believed to be the result of ancient Tuffle genetic weaponisation.
The Faunus are the result of genetic engineering by an unknown source, treated with suspicion due to their "unnatural" origins and the timing of their appearance which coincided with the emergence of the Grimm. This suspicion grew into open discrimination with the end result being that a large number of Faunus were classified as slaves under the Anima Empire, kept as pets, servants etc by the Empire's elite. During the chaos of the Great War the Faunus slaves rebelled and in the aftermath they managed to get a settlement/government of their own in the Mangerie system. Mangerie is, isolated, populated with hostile wildlife and has very low resources, factors that resulted in considerable resentment among the faunus population.
Faunus like humans are found through the the Galaxy.
The Schnee are much as canon a large company tied the mining of dust and heavily involved in Atlas's upper crust, Faunus are preferred hires but get a raw deal, doing dangerous without compensation, insurance etc. These and other discriminatory acts have lead to the formation of groups like the White Fang.
While most kingdoms utilise Aura capable soldiers to defend their borders seve in their military Hunters/Huntress as in RWBY canon are not an official thing. Flight is possible for Aura users but it's an advanced technique that exhausts reserves quickly. KI blasts, with the exception of certain semblances, require the user to burn through Dust. Since this is seen as wasteful, custom weapons are preferred by Aura users.