In the Exosquad universe, the Neosapiens were created by the humans (usually referred as "Terrans" to distinguish the two) sometime in 2040 to serve as slave laborers on Mars, as a part of their terraforming efforts there and on Venus. This also explains their appearance: the blue skin would make them easily visible on Mars and their well muscled physique would make them very strong workers.

His rebellious nature went far into the past when he, along with his "brother" Marsala, was one of the leaders of the Neosapien Revolt 50 years prior to the Neosapien War. He was captured by the Terran forces and led them to the revolts command centers, but that only made his lust for revenge stronger. In the episode "Betrayal" Phaeton is captured specifically by a younger E-frame pilot who later became Admiral Winfield. Phaeton decided to reveal the location of Marsala and the other organizers of the revolt so that his own life would be spared.

Nearly all of the Neosapiens were slaves in the Martian mines before the Neosapien Revolt of 2069. Although they were granted increased rights following the revolts (including control of Mars), most Neosapiens still lived in virtual slavery. The original revolt was put down swiftly (and brutally) by Terran forces utilizing the first generation of the E-Frame technology central to the series.

Following the revolt Neosapiens were forbidden from owning personal weapons, could not hold high profile positions in the military or civilian, and were forbidden from commanding ships. Notable examples of free Neosapiens were Marsala, the only Neosapien member of the Able Squad; Phaeton, the Governor-General of Mars; Gidas, the Martian finance minister; and Phaeton's generals, Typhonus, Shiva, Draconis, and Livia. It was not until the Neosapien War that many of them gained their freedom and joined the Neosapien Commonwealth.

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