The Dragon Needle is supposed to be of vulcanic origin. It strongly resembles stiff content of vulcanic flue uncovered by erosion. The Dragon Needle serves as a waypoint for the dragons comming back to The Palace from their wanderings. Nobody knows exactly how it works, becouse The Palace is located on the clouds and that is why it is not allways in the same place . But it seems that the dragons can see The Palace from The Dragon Needle even if it is anywhere.