During the early period of the Joseon Dynasty, the government undertook currency reform at both central and local levels to promote currency exchange and restructure market order. Drawing on historical sources and utilizing game theory methodologies, this study examines the challenges of state governance and the dynamics of central-local relations during this era. The findings suggest that the establishment of the Joseon Dynasty’s governance system arose from the rulers’ deliberate decisions; however, it was also driven by the necessity to reconcile the development of productive forces with the superstructure. The study highlights the impact of the “official” issue on communication efficiency between central and local authorities, which contributed to the currency reform’s failure. Consequently, the central government’s regulation and control over local regions, as well as its ability to govern the aspirations of grassroots populations, emerged as crucial factors for successful national governance. This research provides valuable insights into the academic value and significance of historical state governance practices and informs contemporary centrallocal relations and policy development.