This is what I got so far. I don't claim to be correct, because I can't prove it. Decide for yourself.

What is the Domain?

The Domain is an interstellar civilization. It is one of the few powers that are capable of expanding their territory even into other galaxies, and defending it against external threats. Because of this capability, the Domain is a very old civilization.

Structure of the Domain

The Domain essentially works like the Roman Empire. Planets that belong to the Domain are like provinces, and every planet is ruled by a governor. It doesn't matter how the planet is governed, as long as its governor manages to ensure the loyalty of the population to the authority of the Domain.

Goal of the Domain

Every planet within their territory is deemed property of the Domain. The goal is to populate every planet with a self-sustaining population that doesn't destroy the planet.

Belief of the Domain

The leaders of the Domain believe that reaching their higher goal justifies authoritarian and manipulative measures. When a population becomes self-destructive, or even a threat to others, it must be stopped and contained.

ISBEs inside the Domain

The status of a planet depends on the population's awareness and technological progress. The Domain is open about the nature of the ISBE, but only if it serves their higher goal. ISBEs are divided into societal classes, based on the type of body a person uses. Bodies are allocated by the authorities.

Biological bodies are seen as the lowest form of physical life. The reason for that is because biological bodies need food and produce waste. The Domain can handle that, but it's considered inconvenient. Putting an ISBE into a gross biological body is used as a form of punishment.

Economy of the Domain

The Domain is essentially a big collectivist utopia. Resources belong to the state. Allocation of resources is managed by the planetary governments. This is how they control the populations. Bodies are resources. You don't own a body. If you are loyal and productive, you are granted a better synthetic body, thus climbing the ranks of society.

Expansion of the Domain

The Domain typically refrains from conquering planets by military force for various reasons. The main reason is because conquering a planet creates instability. The Domain wants to be seen as the good guys. They believe that they are, because they want to bring peace and prosperity.

So, they came up with a better way of assimilating populations. Short version: Seed one or more religions, then use the religion to control the societal development of the population. This is where the idea of "psychohistory" in Asimov's Foundation series comes from. Religion is used as a "catalyst" to ensure a certain outcome.

The Domain and the Prison Planet

As far as I can tell, the Domain didn't invent the concept of the prison planet. But they also have no problem using it to their advantage, because the amnesia makes things easier when you want to shape a society to your liking. This is because the fear of death "kickstarts" religious belief, resulting in faster progress while the population is in that phase.

But there's still an unsolved problem: When a population is technologically advanced enough to become an open member of the Domain, the amnesia isn't needed anymore. There still is no efficient way of getting rid of the amnesia. After centuries of death trap treatment, the population is too traumatized, which prevents an easy assimilation into the Domain's culture.

Because of this, a prison planet like Earth is more of a liability than an asset.

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