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This is where a villager steps up and steps in to defend the village from dragons, becoming a hero, is paid accordingly, receives recognition, status and marries the fairest maiden. The hero isn't nominated by the king but knows at least one villager will bring it upon themselves to do what's right. The king relies upon heronomics to fund the protection of the realm rather than budget for enough knights to defend all of the villages. In the corporate world, product gaps are covered in a similar manner.
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