Dwarf Challenge 1
Enchanted Crystals
"The dwarven lords have asked you to enchant their pickaxes."
Requirements: Angel as Base Faction, Dwarves as Prestige Faction, Reincarnation 6+, Minedwarf upgrade purchased, Elven, Angel and Fairy challenge 1 completed.
Challenge: Cast 20 Tax Collections while having at least 4 spells active.
Effect: Reduce all spells' cost based on the amount of gems you own.
Formula: (-0.05 * ln(1 + x ^ (1 + A / 10))), where x is your current gems and A is ascension count.
Upgrade: Good for Angel+Dwarf
Dwarf Challenge 2
Biased Architeture
"The dwarven lords have asked you to provide their people with ale. Hurry up, the dwarves are getting thirsty!"
Requirements: Fairy as Base Faction, Dwarves as Prestige Faction, Reincarnation 11+, Dwarven Bloodline, Elven, Angel and Fairy challenge 2 and Dwarven challenge 1 completed.
Challenge: Build 2,750 Inns within 2 minutes of a new game.
Effect: Reduce Inn and Blacksmith cost multipliers.
Effect: Reduces cost multiplier by 0.01; with no other reductions applying, the multiplier will be 1.14 instead of 1.15.
Upgrade: Works with Fairy+Dwarf
Dwarf Challenge 3
Rich Miners
"The dwarven lords have asked you to help them collect trade supplies for all the factions of the realm."
Requirements: Elves as Base Faction, Dwarves as Prestige Faction, Reincarnation 21+, 1750 excavations, Elven, Angel and Fairy challenge 3 and Dwarven challenge 2 completed.
Challenge: Collect at least 100,000 Faction Coins with a single Tax Collection.
Effect: Increase your Faction Coin find chance by 100% for each active spell.
Upgrade: Works with Elven+Dwarf
Dwarf Challenge 4
Paladins
"The dwarven lords are interested in training the troops into pious warriors. Begin the initiation as soon as possible."
Requirements: Any Good as Base Faction, Dwarves as Prestige Faction, Reincarnation 27+, 2000 excavations, Dwarven Challenge 3 completed.
Challenge: Have at least 3,500 Knights Jousts and as many Wizard Towers.
Effect: Increase Holy Light bonus based on the combined amount of Knights Jousts and Wizard Towers you own.
Formula: (50 x ^ 0.35)%, where x is the number of Knight Jousts and Wizard Towers you own.
Upgrade: Works with any Good+Dwarf
Dwarf Challenge 5
Underground Foundations
"The dwarven lords have asked you to create underground tunnels connecting the allied factions."
Requirements: Any Good as Base Faction, Dwarves as Prestige Faction, Reincarnation 33+, Dwarven Unique Building, Dwarven Challenge 4 completed.
Challenge: Have 3250 (or 2500 if ascended) Excavations.
Effect: All buildings count 20% more for all purposes.
Upgrade: Works with All
In-Game Challenge Final Reward
Spell Upgrade Iron Grip
Increase Diamond Pickaxe duration by 8 seconds, and its bonus to Faction Coin find chance is passively applied as a multiplier to excavations Faction Coin rewards.