A Challenge Authority, commonly known as a "Poop Claim", is an aggressive structure used to drain an opposing Town's Represented Authority. To build a Challenge Authority you must be a Citizen of a Town Claim as well as have the "Manage Claims" right within that Town. A Challenge Authority must be built on Town Claim but as long as the Challenge Authority is built all at once this action is NOT a Crime. A Challenge Authority CANNOT be Salvaged.
A Challenge Authority increasingly reduces the Represented Authority of the Town Claim each hour after it has been built. Each hour after a Challenge Authority has been built it will ring the Town Bell of both the challenging and the challenged Town, as well as send out a message to the Town Chat. Until a Challenge Authority is Destroyed it continue to drain, and eventually keep the Town Claim's Represented Authority at 0. Once Destroyed, Represented Authority will recover at a rate of 120 per hour.
Represented Authority vs Actual Authority
While often used interchangeably a Town Bell has several types of Authority. A Max Authority which is represented by the Silver capacity of the Town Bell. Actual Authority which is the Silver in the Town Bell, and Represented Authority which is calculated based on the Max Authority and Actual Authority, modified by any Challenge Authorities that may be built on that Town. Represented Authority can never exceed Actual Authority. Only Represented Authority, not Actual Authority, is drained by a Challenge Authority therefor a Challenge Authority will not harm a Town Claim in any way.
His Majesty, in his graciousness and wisdom, refunds 20% of all taxes he takes from the Player Stalls back to the top 10 Town Claims with the highest Authority. You can speak to Right-clicking Benjamin Bryberry in Providence and selecting "View Town Register" will show you a list of the Top 10 Towns with the highest Authority.
Competing For Top 10 Status
Towns that want a bigger cut of His Majesty's tax rebate can raise their Town Claim's Authority by building Boundry Stones, Cross of Saint Georges, or by building a Challenge Authority on one of the other Top 10 Town Claims to drain their Authority and thus drop their rank.