Dwarves are a secretive race of smiths and miners. They've almost never shown their faces to the surface. The only time they've done so was during the first God War, since the God they follow is Tok-Medasz.
They're by far the most innovative, as they were the first race to develop a steam engine. They were also the first to develop Golems. These Golems are capable of thinking for themselves, and live life just as any other race. There has also been news of the Dwarves developing a super-weapon. The weapon has just under the power of a Meganova Gem each time it's fired. The projectile moves infinitely fast, reaching its target the moment it's fired. Unfortunately, this speed wastes more than half of its power. The shot hits the opponent, where it then steals their life, soul and mana, and then uses that to boost the explosion. They have, however, locked it away deep underground, and had the Elves put their most powerful sealing magic on it. They quickly realized that no living being should be able to take a life. They believe that life is a gift, that should not be stolen or wasted. Aside from this, they currently have no means to destroy the weapon.
The Dwarves follow a caste system. Lowest on this system are the soldiers, who are rarely used and aren't given much respect as the Dwarves are a peaceful race. Next are the enforcers, who police the cities for wrongdoers and report threats to the soldiers. Third are the politicians, whose job it is to discuss any matters that concern their city. Fourth are the blacksmiths, who build machines, make tools and weapons and create technology with the help of the scholars. The scholars are the highest, who research experimental technology. There is also an undefined caste position who act as freelancers. They take the role of anything not covered by other castes. Very few Dwarves acknowledge the freelancers' existence.
However, over the past year and a half(From 3023 of the Third Age), within Dwarven society, a civil war has begun. Many Dwarves are angry at the caste system, another large set are heavily in favor of it, and a small subset doesn't care either way. The war doesn't have much traction; not much actual fighting has happened. But, there's an immense amount of tension. It's hard to predict what will happen.
The Dwarves do have rulers, however, that act as diplomats to advance their culture. There is a king for each city, and a high king that represents the rest at celestial meetings. This high king is currently a Demi-God and his name is Reiminus Valkorius.
Currently, the capital city of the Dwarven race is on the island of Luthen, off the eastern shore of the Sanctum Lands, in Soulreach. This island houses Luthenraag, a massive Dwarven city, taking up most of the island. The city goes many layers deep, descending about 11 kilometers. Many of the lower layers are industrial work zones, and are typically off-limits to civilians.
The only other major Dwarven city is underneath Wikinskree, in the Mainland. This city is known as Viskygge. Viskygge, while much smaller than Luthenraag, is a beautiful city and offers many services to the people of the Mainland. Viskygge works in tandem with the Research Facility of the Janni Camp, helping launch the eastern Mainland into the next level of technology.
In DSZC 5, Dwarves have 10 HP, 2 STR, 2 Mana, 0 ARM. Being innovative, they're quite adept at creating things.
Dwarves are a Tier 1 Race.