The Empire of the Moon is led in theory by the great golden dragon, but he does not wish to rule, delegating his authority to the figure of the emperor, only intervening if the latter turns out to be a terrible ruler, in which case he is usually dethroned to place another emperor. This event is rare, because the dragon usually choose its rulers well.
In turn, the emperor places the clan leaders of the nobility among the heirs of the important families that form the clan. The leaders of the clans govern the different territories like small emperors, having at the same time the family leaders in different provinces. The territories of a family leader is divided in the fiefs of the feudal lords, who have the lower nobility in their charge.
When the emperor dies or is deposed, his successors go to see the great dragon to request his blessing to be invested. The latter can request the presence of the most influential noble families, being able to choose one of its members (or any imperial citizen, technically) as next emperor if none of the successors of the previous one looks like a suitable emperor. Once he chooses the next emperor, she is crowned and reigns throughout her life if she is not dethroned.
Demography and Population
In the empire there are 10% of hobgoblins, 47% of tengus, 17% of elisians (kitasune), 15% of orcs, 6.5% of goblins, 2% of oni, 1% of arachnos and 1.5% of other races.