From Rodnover:
WHY WERE CROWNS INVENTED?

In the past, the elite on Midgard-land consisted of people who had reached high levels of development. Around their heads appeared amazingly beautiful structures, which many could see in the form of a glow. The Dark Ones, having created something similar in the form of a crown from natural crystals and having placed it on their heads, considered that they thereby confirmed their belonging to the "elite".

No matter how beautiful the crowns were, they remained mere jewelry and nothing more.

With such attributes the Dark tried to create the appearance of their right to be "elite" for the subjugated peoples and over time this pseudo-elite succeeded. For a long time, the peoples bowed to the holders of the crowns. No one remembered anymore that the true elite of the people had structures shining on their heads, not jewelry.