First Appearance: Chapter 161; Episode 96
The Kung-Fu Dugongs are a group of martial arts masters living in the Sandora River in Arabasta, known for their impressive combat skills and fighting prowess. They operate under a strict honor code: any dugong that gets defeated must become a loyal follower of whoever beat them. The code also applies to that person's companions—so if you're traveling with the dugong's conqueror, you've got an ally in them too.
Luffy ended up as their leader completely by accident. He wasn't trying to defeat them or anything, but that's how it worked out, and now the entire group considers themselves his followers. It's one of those random things that happened during the crew's time in Arabasta that actually turned out pretty handy.
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