The "Nihil novi" act, adopted in 1505 by the Sejm, transferred most of the legislative power from the monarch to the Sejm. This event marked the beginning of the period known as "Golden Liberty", when the state was ruled in principle by the "free and equal" Polish nobility. In the 16th century, the massive development of folwark agribusinesses operated by the nobility led to increasingly abusive conditions for the peasant serfs who worked them. The political monopoly of the nobles also stifled the development of cities, some of which were thriving during the late Jagiellonian era, and limited the rights of townspeople, effectively holding back the emergence of the middle class.