I see, just thought I’d point that out

@phoedra135  
There was a Fanfic out there that had Lucius developing a more-expansive Blood Purity System after having already cross-referenced the details on a thesis written by Hermione which listed that the reason behind why the Pureblood Families were losing their magic potential while Muggleborn children were on a meteoric rise in power was because of many a Pureblood Family resorting to inbreeding with other Wizards and throwing out their Squibs. The new Blood Purity System envisioned by Lucius worked more similar to a Meritocracy: where those of higher learning and caliber could attain a higher Blood Purity Rank based on how much academic prowess they achieve or their Order of Merlin ranking.
 

@Ohvist  
Fun fact, the Malfoys aren’t one of these families, Though the family was inclined to blood-purity, they were unwilling to practise the dangers of inbreeding with cousins, correctly knowing that it would and could potentially endanger their genes, and would accept marrying half-bloods due to the small pool of available pure-bloods. Hence, it is possible to find several half-bloods on the Malfoy family tree. This differs them from the more fanatical groups such as the Blacks, Lestranges and Gaunts, though apparently did not deter their respect from such families.

@Spiritus Arcane  
In many ways, this non-intermingling system feels very similar to the Blood Purity system within Harry Potter where the Witches and Wizards were divided into different camps based on what their parents were: with Muggleborns being treated very lowly despite the fact that the Witches and Wizards seemed to ignore that Squibs (Non-Magicals born to two Magical Parents) were indeed a thing that could help explain why Muggleborns exist as they are, as was hinted at by Hermione Granger possibly having an Alchemist Wizard ancestor in the form of Hector Dagworth-Granger.
 
Because of the Blood Purity System in Harry Potter, those who were of Pureblood Status had been granted high privileges by having seats on the Wizengamot or at the very least high-enough positions within the Ministry of Magic in order to pass certain laws, but because of their strict adherence to blood purity; many of these Wizard Families were woefully close to inbreeding (as was shown with most of the Black Family having branches leading off into the other Wizard Families) which could lead to some very serious and erroneous mental and health problems in the future with the end line of it all being sterility.

@jdb1984  
So basically the Loyalists are isolated above the other two and there’s no incentive for either side to intermingle. Yeah definitely predict a lot of heads rolling in the future.

@jdb1984  
At the very least, interspeies relationships are allowed and even marriage is allowed. Most creatures serve in the army. Though most of the mainlanders are ponies, the system is not based on race, so that’s the only good thing..

@Spiritus Arcane  

 
You can only marry someone in your blood status. Anyone who tries otherwise will have both immediately be brought down to traitor status.
 
That said, if two traitor status marry and have a child, then one of them does something to become a redeemed blood, the spouse and child will be elevated to redeemed along with them.

@Background Pony #0C76  
Yeah I was about to say the same. Though my question now is what status would someone born of a Loyal and one of the other two have? It’s probably officially forbidden, which makes it likely that they’d get one of the lesser statuses.

all this is doing is setting the Empire up for failure at the hands of mass revolts and the suppression of them leaking out into the public eye.