The Dwarven Dominion

The Dwarven Dominion is the name used by the peoples of Erru to collectively refer to the two city-states of Karath Zuhrond and Karath Runehm. Located in the Ironspine Mountains, these immense underground cities comprise the totality of dwarven-ruled lands in Erru.
Background
It is theorised by Imperial historians that the Dominion once covered a much larger territory, encompassing multiple cities across Northern, Central and Southern Erru, until some ancient and terrible cataclysm saw all but two of these cities destroyed. If there is any truth to these theories, it is a secret only the oldest and most venerable of the Silver Estate’s Chroniclers would be privy to.
The dwarves of the Dominion had always traded with their human neighbours, but they did not establish any true political ties with these nearby nations until the arrival of the Midaevian Empire. During their expansion into what were then known as the Calderon Principalities, the Empire sent envoys to the gates of Karath Runehm with the intention of opening diplomatic channels. Although it is commonly assumed that the Empire’s initial designs were of conquest, the opening of the Dominion’s cities allowed the Empire to appreciate just how much of a challenge this would be.
The Dominion is and remains one of the most technologically advanced civilisations in the entire world. When humans first began cooking with fire and assembling mud huts, the Ironspine dwarves had already been forging iron into steel, shaping stone into cities and writing runes of terrible magical power for over three thousand years. Although their populations were not as vast as the nations of the edragulner; the “Upworlders”, they could still field a sizeable army of citizen-soldiers, equipped with weapons and armour of a quality even the Empire with its near limitless resources could struggle to match, to man walls strong enough to withstand everything up to and including dragon fire.
However, even with all these advantages, the cities of the Dominion, while nigh-on impregnable, were not invulnerable, and if it came to war, the dwarves realised they could not win. The Empire had numbers, dragons, powerful magic-users, and most importantly, they had the ability to completely cut off their access to the world above ground. For their own part, the Empire realised that victory in a war with the dwarves would only come at astronomical cost in terms of treasure and manpower. So instead, a treaty was proposed, with the goal of binding the Dominion to the Empire while allowing the dwarves to retain certain freedoms.
Under the terms of what would be called the Treaty of Adlena, the dwarves would be forbidden from selling their weapons and armour to anyone other than the Empire and its vassals. They would be compelled to share their knowledge and research with the Empire’s academics and scientists, and in the event of war, were expected to lend their engineers, miners and builders to the Imperial Banner.
In return, the dwarves would be granted unrestricted access to the Empire’s vast trade network. No Midaevian solders or Ministry agents other than the small detachment based in the Imperial consulate in Karath Runehm would be permitted to set foot on dwarven territory unless invited. But most astonishingly of all, they were permitted to continue worshipping their own gods and developing their magical runecraft. This marks the first and only time the Hierarchy has permitted a vassal of the Empire to follow a religion other than the Church of the Four Gates, and practice magic free of the fear of persecution, demonstrating more than anything else the Empire places on securing access to Dwarven science and industry.
Government and Society

Historical records suggest that the Dwarves were once ruled by a hereditary monarch, but they have long since done away with such institutions. Instead, their society is governed by what to outsiders resembles a bizarre amalgamation of technocracy, religious oligarchy, military stratocracy and plutocracy in a system that might approximately by referred to as a meritocratic tetrarchy.
The two cities are ruled jointly by a congress of the Dominion's most learned scientists, effective military strategists, richest industrialists and revered priests known to the dwarves as the Kurac-Zahd, "The Wise Council". The Kurac-Zahd is composed of four Arzakhs, "Lords", one to represent each of the four Ingthads (a word meaning either "Estate" or "Foundation" depending on context) upon which all of dwarven society is built. The Lords are elected by each Estate to represent them and push their agenda. Under each Lord are two Ulmtargs, "Councillors", responsible for advising the Arzakhs or serving as their representatives.
The leader of the Kurac-Zahd, known as the Hronarzakh, "Elder Lord", is chosen annually through an election process called the Arzungolm, "Gathering of Hearths". The process begins during the penultimate month of the dwarven calendar. Each Lord is invited to speak before the Kurac-Zahd and outline the reasons they believe their Estate should rule. These arguments are recorded by official scribes before being copied, printed and disseminated throughout the Karaths for contemplation. All dwarven citizens are given the opportunity to decide what the focus of their society for the year should be.
For example, if the majority vote to prioritise scientific research, then the Lord of the Silver Estate will be elected as Hronarzakh. However, if they decide to increase manufacturing capacity and develop trade links, then the Lord of the Gold Estate will be chosen. Alternatively, they may believe that the spiritual wellbeing of the nation needs tending to, in which case the Lord of the Bronze Estate will be elected Hronarzakh. The Arzakh of the Iron Estate may never stand for election. However, in the event of war, they are automatically appointed Elder Lord, remaining in the position until the Kurac-Zahd declares an end to the war, at which point they will continue to govern the realm until the next election.
Military
The defence of the Dominion is managed by the Iron Estate, unique among the Estates as the only Ingthad prohibited from holding a position of supreme power over the Dominion except in times of war. However, in the event of war, then not only is their Arzakh appointed Hronarzakh, but every dwarven citizen is automatically drafted into the Iron Estate.
Before they join their chosen Estate, every dwarf in the Dominion must complete a year of service with the Iron Estate, during which they receive weapons training and learn combat tactics. Even after they complete this year, they are expected to spend one day a week in their local Mustering Grounds to practice weapon drills, under the guidance of Grulzud-Rams, "Phalanx-Captains" and Nuldags, "Shieldmasters", regular army officers and non-commissioned officers, respectively.
As a result of this, the relatively small Dominion Army has access to a reserve force of tens of thousands of well-trained, battle-ready troops, capable of being called-up at a moment's notice.
Culture