Only works if you have a broad dwarf core that all run it. The idea is that you maximize/snowball your BE bonus by running high basic BE.

Dwarf/Merchant

Late to mid-age strategy, assuming 10% pop sci and 14% BE sci, 70% food sci. Baron Rank

1. Homes: 400 (40%)
2. Farms: 50 (5%)
3. Training Grounds: 150 (15%)
4. Forts: 60 (6%)
5. Guard Stations: 80 (8%)
6. Hospitals: 80 (8%)
7. Guilds: 70 (7%)
8. Towers: 40 (4%)
9. Watch Towers: 70 (7%)

** Effects Summary (Available Buildings Only) **
1. +4,000 maximum population, +100% birth rate
2. Produce 5,180 bushels (6,475 with FL)
3. +28.3% offense bonus
4. +12.52% defense bonus
5. -21.79% losses when attacked
6. 21.79% cure plague, -32.68% military losses
7. Training about 4.14 wizards per hour
8. Produce 710 runes per hour
9. Thieves: 19.27% catch, -28.9% damage

Population:
(25+4)*1.1*1.02 = 32,5
10 peasants (10 NW)
3.5 wpa (17.5 NW)
2 tpa (10 NW)
7 def specs/acre (28 NW)
10 elites/acre (50 NW)

(could choose to run lower wpa/tpa for 100+ opa.)

Numbers:
35 dpa
87 opa

With this build at 10 peasants/acre you will have 100*1.3*1.14 = 148% BE.
With most other attackers on the server running 75% BE, you will need only half the buildings they run for the same advantages.

NPA:
115.5 (military/wizz)
55 (buildings)
10 (science)
180.5 Total

Advantages:
1. High income before war.
2. Very hard to control peasants because of the high wpa and +100% Birthrate + LP.
3. Huge sustain because of being to ToG with high income during war. Can also keep the dragons coming.
4. High draft during war.

Disadvantages:
1. Gold dragon (have to kill it very fast)
2. Chastity (but hard to keep up for long)
3. Relatively high NPA


Yes, it can be beaten (as any strategy can), but I think most KDs would struggle keeping down such amounts of peasants. You could also decide to run 3.5 tpa instead of 3.5 wpa and just kidnapp them back from enemy attackers.