City of the Forgotten Dragon

The City of the Forgotten Dragon is the domain of Demon Lord Milim. It is populated by the descendants of Dragons, numbering less than a hundred thousand, who are managed by the Dragon Faithful.

Overview
All citizens are dragonewts who possess formidable combat ability (all of them ranked C and above), hence there's no standing army except the priest warriors.

There was no government. All the crops and other goods produced were collected at the Central Temple, where it was distributed equally by the head priest. It might seem like this system would fail, encouraging people to grow unproductive and lazy, but that wasn't the case. Everyone, workers and nonworkers, was guaranteed at least a certain amount of the wealth—and the more hardworking would also be provided with additional supplies.

This was similar to the "universal basic income" idea that had gained traction around modern Japan. The main issue was who got to decide how much of a contribution each individual made to society...and that was Middray's job, granted exclusively to him by Milim.

That right afforded Middray all but absolute power in this city, but he never abused that power because the other priests who served him had the right to dismiss him from office. If he got too selfish with his decisions, he'd lose his post. That understanding was what kept Middray from becoming a tyrant. Thus, these tens of thousands of people were far better led and organized than one would expect at first.