Toasterland is a nation that Princess Nova Storm was declared the princess/queen of as a result of her popularity and heroism, as a sort of quest reward. It serves as a safe "home base" for her, and she lives in a castle.
The main distinction Toasterland has is that its world, and many of its inhabitants follow video game tropes and physics. This is similar to how a cartoon world follows cartoon logic. The setting is mostly modern with bits of fantasy and sci-fi mixed in, without overwhelming the whole thing. Think how superhero comics usually are.
Toasterland has a very diverse set of biomes, which tend to be pretty small. A town could easily have two or more biomes in it.
There are many inventions that make use of the nation's unique physics and magic, and Toasterland residents have a lot of fancy technology available to them. Game mechanics are exploited to produce clean energy and bring other beneficial effects. Farms that produce large quantities of a resource for free are very common.
There are extremely high capacity chests, drawers and closets, and most of the time people keep things they need to take with them in hammerspace-style "pockets". Due to this concept, trash can be stored without taking up any space so there are no landfills or dumps. Many things are recycled in the first place, so it's moot.
Toasterland primarily exports wood, precious minerals, and fruits of all kinds. The extremely fertile land really helps with agriculture, as the only requirement seems to be that the plant gets enough light. Minerals keep appearing to be mined again after being extracted. Because of the plentiful and easily-obtainable resources, Toasterland is a post-scarcity world.
Toasterland both imports and exports lots of modern and retro electronics, most notably video games.
With a squirrel for a princess, the majority of Toasterland's population is anthropomorphic animals, primarily felids (cats of any kind), and canids (canines, foxes, similar). Rodents (and squirrels in particular) usually have more power and status throughout Toasterland, but anyone of any species can start a Town.
For fun, citizens often go to the amusement parks, and the national sport is Furniture Fight, which involves two teams alternating between buying and placing furniture and vandalism and shooting missiles at the other person's house, with the better rated house winning (and this results in most of the population being skilled with missile silos and rocket launchers). Video games and swimming in one of the many lakes or rivers is also popular.
Toasterland is mostly ruled in a hands-off fashion, with some regulation making sure things run smoothly and with the government taking care of public works projects.
Nova Forest and Ft.Toast are ruled over just by Nova, but cities are incredibly easy to build on account of small buildings only taking a few minutes to put up (or shorter if neatness doesn't matter) and anyone can found their own cities, ruling them as they see fit as long as they do not go against the list of rules she has in place to guarantee Toasterland citizens some rights and maintain at least a little order. Cities make their own rules that go below the royal rules. When a citizen doesn't like the rules of a given town, they can easily move to another one.
Rules for all of Toasterland
Be nice, no killing, no stealing. Violence is heavily discouraged. US Dollars and Euros are the preferred forms of currency and must be accepted as payment; Bells, Dogecoin and wood chips are NOT required to be valid.