Aside from entering and exiting the city, the internal regulation of Dawn City is not very strict. After all, there are too many doomsday refugees, and the Federation's jurisdiction within the city only extends to energy, public safety, food supplies, and dark invasion inspection and control. Furthermore, the Federation uses Blood Essence as the currency anchor for transactions. Apart from these, any behavior not involving public safety is not regulated.
Entertainment, commerce, including armament and superpowes—whatever you want to do, nobody cares. Rather than calling this a city, it's more apt to say it's a large gathering place for refugees. The Federation's high-level officials are not worried about governance issues; they only focus on urban defense safety and resources.
After all, under the apocalypse, the future cannot be seen; everything is growing savagely for the sake of survival.
