So we create a new thread that talks about the building that we wish to build and that is our new home here in Gwynedd village?
When everything is in place you will have an option to go to a 'Shop' and with your FP you can get a Thread, create buildings, choose a character look, and so forth. This is then added to Gwynedd. In other words, each participant makes up the Village rather than for me to decide what is going on in Gwynedd, each participant through their Posts, and buildings decides what is happening. The backbone of it all will be role-play. For instance you may choose to open a Blacksmith's foundry or be more controversial like running your own religion and try to convert other characters, etc. You can see it like a Blog of events if you will. To add to it I will create random events that you can build on such as certain people passing through, or storms, etc.
Simple things will be cheaper than more elaborate things. A good way to look at it: if there isn't something of a challenge to it then the Role-playing Game will not be as a fulling.
No special status, but since there will need to be some FP involved to buy your building and so forth participants will either need to make some Core Posts or Donate and Upgrade if they can't be bothered trying to gain FP.