For some reason, LTU, it's hard for me to put into words what I think while reading your submissions. I think I need to just start taking notes as I read yours or something...
Anyway, these three chapters are far more readable in terms of 'what the heck is going on here?' than your previous drafts. Probably because you've only given us one viewpoint so far.
I'm not a fan of the different spelling- I prefer Caramoth, but that may just be because it's what you introduced him as in the first chapter. It may be because of what I believe is an over-abundance of 'K' used instead of 'C' in names for reasons of 'being different'. If you do decide to change it, that's your decision- just putting in my two cents.
Overwhelmingly, I get the impression from Caramoth/Karemoth that he's resentful. Which is strange, because I go back and read the chapters again, and there's really very little that points to that emotion, and yet at the end of it, that's still the impression I have. It's not a 'poor me' attitude, it's more of a 'well, somebody's got to do it, it might as well be me- but I don't have to be happy about it.'
So far your other characters are more two-dimensional than three- which is fine, because they're side characters. Just something to be aware of.
I'm confused as to what kind of 'smithing' is involved here. You should probably go into that more at some point because 'smithing' still conjures up images of forges and hot metal for me, whereas I gather you have something entirely different in mind.
Overall I see great potential for your current draft- the first time you submitted, it was very much a case of world-building and backstory getting in the way of the tale you wanted to tell. This time around, you seem to be more organized and what you write is very purposeful.