The Palace is the main building in the Town and the Jarl's dwelling. Here, all your Town stats and your profile info are displayed. Upgrading the Palace unlocks the ability to construct and upgrade other buildings. The Town level is equal to the Palace level.

For upgrading the Palace, you receive a Jarl's Coffer, which contains various items. The higher the building's level, the more valuable the reward from the Jarl's Coffer.