This is not Earth; many creatures and their natural affinities, as well as their relationships with the gods and the Laws, are deeply ingrained, running through their very bones and souls. Attempting to change such innate nature is only half as effective while requiring double the effort.
Why would one wish to change such inherent traits that are so beneficial to the Gnolls?
Is it for the so-called equity and freedom?
This is a typical case of imposing one's own subjective ideas onto others.
Going with the flow will yield twice the result with half the effort.
Therefore, no matter how much his power expands, he planned to govern the Gnolls in a divided manner.
It's not that there will be no reward and punishment system, but rather that this system will not involve ordinary wealth. Instead, it will offer things related to Giant Dragons as rewards — such as being responsible for delivering food to a Giant Dragon, or serving as a guard for a Dragon's Nest.