Sauron's rise to power in The Lord of the Rings stems from your ability to control Rings of Power, and these objects have different effects on each of the groups they are given to. The three elven rings were not corrupted by Sauron, as they were created only by Celebrimbor. However, the Dwarf Rings of Power and the nine Rings for Men have devastating effects on their users. The Men of Middle Earth wearing the Rings of Power are transformed into Ringwraiths, while the dwarves' rings make them greedy and lead to their downfall.
The Dwarves' greed is shown in The Rings of Power Season 2, with King Durin III trying to use the Rings of Power to manipulate the other Dwarven leaders into paying more taxes. He also delves deeper into Khazad-dûm in hopes of finding riches – a move that ultimately leads to his death. Although Power Rings are dangerous to everyone, they seem to have a very specific effect on the Dwarves of Middle Earth. This raises questions about why they make Dwarves, in particular, so greedy. JRR Tolkien's books contain the answer.
Dwarves once had a greedy streak in the first era of Lord of the Rings
Although Rings of Power seem to make Dwarves greedy in Lord of the Rings universe, It is worth mentioning that their greed is already present before receiving the objects. Dwarves have a greedy streak during JRR Tolkien's First Ageevidenced by the incident with the Nauglamír and the elven king, Elu Thingol. The Nauglamír is a magnificent necklace made by the Dwarves of Nogrod and Belegost and given to King Finrod Felagund. According to Tolkien's Legendarium, the Dwarves of Nogrod were later tasked with adding one of the Silmarils to Thingol's necklace.
Of course, not all Dwarves of Middle Earth are consumed by avarice, but there are several examples of them falling prey to it in Tolkien's Legendarium.
After completing the project, the Dwarves refused to return the Nauglamír for Thingol, and they even killed the elven king because of it. This caused conflict between the Dwarves and Elves, emphasizing the former's greed. Of course, not all Dwarves of Middle Earth are consumed by avarice, but there are several examples of them falling prey to it in Tolkien's Legendarium. This is perhaps the clearest, establishing the Dwarves' reaction to the Rings of Power before they even existed.
The Seven Rings Amplified the Dwarves' Existing Greed
Sauron was unable to directly influence the dwarves through them
With the Dwarves already exhibiting greed in the First Age, the Rings of Power only amplified what was already there. It's not so much that the Rings of Power made the Dwarves greedy; they simply reveal the worst instincts of their users, and the Dwarves of Middle-earth are overwhelmingly attracted to wealth. This is obvious from the events of The Hobbit, and The Rings of PowerThe plot of Khazad-dûm also emphasizes this. Dwarven characters search for treasure without the rings influencing them. However, corrupted objects take this trend to new heights.
It is important to note that Sauron intended the Rings of Power to have more devastating effects on the Dwarves; ideally, their reaction should have mirrored that of the Men of Middle Earth. However, the Dwarves demonstrated more resistance than Sauron expected, making him unable to influence them directly through objects. This was why their Rings of Power didn't make them invisible or turn them into Nazgûl. Rather than being physically subservient to Sauron, the Dwarves experienced personality changes due to the rings. As a result, his greed worsened.
How the Seven Rings Led to the Downfall of the Dwarves in The Lord of the Rings
They became isolated and this led to their downfall
Although the Dwarves of Middle Earth did not face the same consequences as the Men who received the Rings of Power, the objects eventually led to the downfall of the Dwarves. The Rings of Power made them more petty and more prone to greed, which played directly into Sauron's hands. The Dwarves' kingdoms and alliances dwindled due to the effects of the rings, and they became isolated and vulnerable because of it. Most of them focused on wealth rather than the problems plaguing Middle-earth. As Elrond states in SDA"They hide in the mountains in search of riches, they don't care about other people's problems."
As the Lord of the Shining Caverns, Gimli helped restore the Dwarven kingdoms to some extent after The Lord of the Rings. However, Dwarves continued to become less relevant during the Fourth Age, which was considered the Age of Men. This outcome resulted from their actions since the First Age, and was compounded by the Rings of Power and their impact on the Dwarves before The Lord of the Rings.