In pre-historic times, Sikkim was inhabited by 3 tribes viz., Naong, Chang and the Mon. The Lepchas entered Sikkim later and absorbed them completely. They resorted to the practice of electing a leader whose advice & counsil was sought on crucial matters & followed.

The Tibetan migration in early 17th century led the Lepchas to shift their habitats so as to avoid conflict. Meanwhile they struggle among the followers of the "Yellow Hats" & the "Red Hats" in Tibet forced the latter to seek refuge in Sikkim, where they attained the status of aristocracy & gradually dominated the State.

In order to avoid any possible opposition from the Lepchas these immigrants chose one venerable person Phuntsog Namgyal as the temporal & spiritual head of Sikkim. He relocated his capital to Yuksam & estlablished a centralised government..