Dwarfs are, as a race, defined by their instincts. These instincts are ingrained from birth and are mostly irresistible. Dwarf society is designed around these instincts, either feeding or resisting them. Instincts exist in a hierarchy, with the higher order ones often taking precedence over the lower ones when the two are in conflict. The list, from highest order to lowest is as follows:
1. Protect the young
2. Respect a beard
3. Establish a hierarchy
4. Acquire gold
The only time these instincts can be ignored is under the influence of alcohol. While most dwarfs are fully fine with living under these instincts, alcohol is still a popular product and the most common drink in dwarf cities.
Government:
There is no unified dwarf empire unlike the numerous that exist within human lands. Each mountain city has its own king and governing body. At the top sat the king, with his generals each overseeing a different aspect of city management using their own underlings. As such all decisions which require a higher authority are kicked up the line until they reach the king for a final decision. Each general has discretionary authority for decisions within their own sector of governance and is allowed to maintain their own military force. Each mountain city state has its own list of allies and enemies and regularly wage small scale wars against each other over slights or grievances.
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Economy:
The basis of dwarf economy is mining. Ore is mined and converted into tools to mine more, or minted into coins, or refined into weapons to take and protect. Food is grown to sustain those mines and the warriors who protect them. Soldiers are trained and paid to protect the excavations. Outside of mining, trade caravans run between most major Dwarf cities exchanging raw materials and local specialties for foreign goods. Some cities are open to trade with their non-Dwarf neighbors, with the most prominent one being Falken. Dwarf goods are in high demand within human lands making Falken a rich merchant state.
Food:
Dwarf food is a mixture of subterranean crops mixed with a small amount of surface farming and animal husbandry. The most common crops are types of fungus and grains to be refined into ale. The only animals raised domestically are goats and sheep which provide leather, meat, milk, and wool, making them incredibly important to the everyday goings on in the cities.
Dwarf cuisine is very dependent on the cost of the meal. A poor meal might consist of locally grown mushroom stew and some dried goat meat while the rich feast on imported fruits and meats from human lands. Dwarf physiology makes them immune to any toxins or poisons found in fungus, leaving any kind of mushroom edible.
Ale is the drink of choice for all dwarfs everywhere. Each city has its own brewery under the direct control of its king as well as numerous others producing ale of all kinds and tastes.