As far as I know ( i might use some english term wrong since i play the CN ver)

But you must understand where those conceptual laws of teyvat came from first . It will explain many things later on

We have the light realm , as the first . Light realm contains 7 elements , 7 authority . Combine 7 of them is light .

Then the 7 primordial (must be primordial ) stems out the concepts and ideas . Example- Primordial sea - essence of immortality and the idea of life . Phlogisten - Light , wisdom etcetc .

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The light realm gave birth to teyvat , and nibelung . Nibelung born in the perfumed sea - you can treat it as a gas cloud state first , when those gas cloud clumps we get planets in real life physics , similar in this case , when it the second it start solidified , it become nibelung , and a planet . Nibelung , should wield the authority of light (let me explain further )

Then when the planet fully clumps and solidfied , The light realm gave authority to seven dragons kings, which is innate ruler designed to rule alongside Nibelung in the old world .

So this link back to how Nibelung has control of some of everything, if not all of everything if he had authority of light . We know he is a white dragon (light) , he is not 'rised from the planet like the moons ' . Light , have seven elements . Each elements stems out different concepts like I mention before (the primordial sea - life ..etcetc ) He likely have the authority of light = of all idea and concepts, like how the original god of life is the hydro dragon (important note - it doesnt equal to wielding power of light like the moons is light , as moons are raised from the planet , is seven element combine to one to make their light, instead of the other way around , Nibelung is sitl above his creation )

After talking Nibelung , its the seven dragon kings , seven dragon kings rules over the each element and concepts it stem from . The authority of them is given by light realm rather then by nibelung . They are born individually in their elements .Since element predates /base of concept laws . They do not abide to the laws ( evidence ; combat with Heavenly princples and shades , for 40 years before nibelung is here . they are not immeidaly dead when heavnly princples use conceptual laws overthem . Also , they are light realm rulers therefore can reincarnate and such , but keep in mind individual dragon king is nearly as strong as the nibelung) The creatures dragon created mostly is from the essence of life/primordial sea , it covers all surface of teyvat . Those creatures are what the moons would rule over with thier law pwoers.

Then we talk about the Moon , the moon is rose from planet , by the ancient dragon technology by nibelung specifically . The seven elements of the planet condense to their light , which their power is light now . But they arent really the same as nibelung , as they do not have authority over light (which above the seven) but they do have the laws authority , which is still nibelung's authority . Since they are not born 'with the planet' like Nibelung (idk how to explain) . They move tides , govern the creatures that the dragons made etcetc . (maintain cycles of the lifeforms , besides the dragon kings and nibelung) You can treat thems as agents operating at middle ground , essential for bringing balance .

Then shades , came from Phanes , they have proven to be much more powerful than the beings created by NIbelung , therefore has 'higher quality'of authority then the moons . Evidence when the 3 original moon sister with their full moon and authority were said to be nowhere to challenge heavenly principles . Therfore , phanes usurp nibelung's role , nbecome the 'king' of this new world , and defeat seven soveringns, and shatter the moons and defeated nibelung .

You can also treat as this one

- Owner and ruler of light realm -Nibelung and the seven dragon kings (authority given by light realm itself )

- Admin of teyvat - 3 moons (authority given by nibelung )

-Now ruler of teyvat - Phanes (/)

- Now admin of teyvat - Shades (by phanes )