???:

Hundreds of years ago, when humanity was born from dust; there were dozens of stories of Grimm, where they came from, what they want and more importantly what they will inevitably do; but there was one consistent tale that stuck in mankind's mind for the longest time: The Demons. Much like the Faunus who were born with features similar to the animals that walked Remnant's face, the Demons came into existence with features that resembled Humanity's greatest enemy. However while they had natural physical attributes that can match and even exceed some humans, they were also incredibly aggressive which would also inevitably attract the creatures of Grimm to their negativity. Stories spread throughout the lands, their savage nature and the ever growing link between them and the Grimm resulted in thousands of Demons into the mountains and wastelands to be left alone and exiled from humanity's presence. Much like Humanity and the Faunus had their own settlements and homes, Demons were equally spread throughout what would become the 4 Kingdoms….though as time and generations skipped by, the common superstition still remained; If a Demon was close, then Grimm wouldn't be far behind. It didn't take long for Humanity to shun anyone who bore the marks of the Grimm whether it was a claw, a tail or even something as simple as a marking on their skin, Demons were feared and reviled by many who also shared the same ill intent to the Faunus….it didn't take long before they disappeared for good; whether out of fear or necessary action but the Demons soon faded into the darkness, told as cautionary tales and superstition, with Humanity turning to their next target to fear and ostracise….

But Humanity will never forget why they remain fearful of the dark…

Ozpin:

Humans and Faunus have been treading the same walk of life alongside one another for many lifetimes….but it was never always this way; The Demons were another species of humanity that co existed alongside their fellows but had it's own unique distinction, as they often had marks and features that made people mistake them as Grimm…whether they had fangs and claws like a Beowulf or they boasted the physical strength of an Ursa, there were some that even had shell like skin. Though this does not always make it a benefit; Humanity has an unfortunate tendency to isolate and fear what they do not understand, making it difficult for people with Demon traits or heritage to interact or work alongside Humans and Faunus…..some reasons were justifiable as certain demon traits made people violent or very aggressive and even lead to the eventual  discrimination that Faunus did as both were equally called such names before the Great War. If one fact was undeniable…it was that the schism grew so wide that Demons were cast out of villages and towns due to their budding reputation and were left to fend for themselves in the wilderness; fading further and further into tales before being forgotten about entirely.

Though Humanity forgot about them, the history books do not.

Qrow:

So….Onto our next subject of…Oh, oh this outta be good! Oz told me about these particular characters plenty of times, the Third Subspecies of Humanity that no one…and I do mean NO ONE likes to talk about: Demons. Remnant's very own boogeymen and honestly it's hard to deny; imagine seeing a person walking around and they have a bone white pincer on their arm or wings that don't exactly look like a bird's….People tend to get abrasive around the Faunus easy enough but Demons tend to make people a little more nervous then anything. Especially since their reputation of being aggressive and violent to anyone looking at them wrong doesn't help either, thankfully for most people; Humanity's "Own worst enemy" has long since died out…or at least thought to have been. Atlas has made some strides with all their medical mumbo jumbo and have started looking into Genetics with tracing back to ancestors and how a Faunus ancestor can have a human grandkid…and sometimes vice versa, but something seemed to cause a little unease as the talks of demon genes started to crop up…I asked Ironwood about it once and he said that it was either inconclusive or not enough could be found to prove it….but kind of like how human parents can give birth to a Faunus kid….I can see why that kind of logic is a little scary to think about…it's improbable but not impossible to imagine someone's lil bundle of joy growing up to have some aggressive tantrums or suddenly growing a Deathstalker tail…

Though I guess the term "A demon in all of us." might hit a little closer then you'd think.