The party was established shortly before the beginning of the Hemmoian Civil War. The founding members were mostly discontent male and female Gigerdians from the outer rim colonies of the GA. The members wished to better the sociological position of the outer rim colonies throughout GA space, and were even willing to extend their hospitality towards other outer rim territories beyond GA borders.
The party chairman at the time of the Hemmoian Civil War was a certain Cerel Ulwenius, who decided to hold a speech during a regular senate hearing concerning the Hemmoian Civil War. During this speech, he gave open support to the DHR rebels and sympathized with their agenda, and even offered them safe havens in GA territories. Ulwenius also stated, that the Hemmoian Federation was just a large concentration of totalitarian mushrooms with bloated craniums gone bad. President Dalleer immediately acted by sending security forces to place Ulwenius and senators Jul Hadok and Thamar Gader under arrest.
The three senators were then placed under house arrest at their apartments in Station Prime orbiting Gigerdi Prime. After spending some days in almost total isolation, Ulwenius managed to contact Hadok and Gader. He told them to escape the station as soon as possible, and to try and find refuge from some location that the GA couldn't reach. After a daring escape, only Ulwenius and Hadok managed to escape from the station. Hadok then quietly hitched rides in cargo freighters in order to reach the DHR, but Ulwenius had a slightly harder time of escaping GA space. He first went to Ivor Prime, from which he boarded a civilian liner headed to the outskirts of the Zelok system (in DHR space). At some point during the travel, the transport pulled out of faster than light travel, and then simply disappeared. This mysterious disappearance of Transport TD-812 has never been solved, but theories exist of a possible reactor failure aboard the ship - or even terrorism. Some even believe, that a GA military vessel intercepted the transport.
The only leading member of the Democratic League who managed to escape (more or less) alive was indeed Jul Hadok, who later became the attaché between the Free Republic of Hephaestus and the Democratic Hemmoian Republic.