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The term "overlord" has it*s origin in medieval age. Back then , the overlord was a lord, a nobleman, a rich owner of land, for whom the peasant had to work hard and pay fees, called "fiefdom" in those days. The peasant were in indentured servitude toward the "overlord". Maybe, that*s might be right, literally speaking "over lord" is one rung over a general "lord". And, indeed, the overlord on medieval ages was also a kind of "patron" for the poor, dependent peasants.
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