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Daimon (δαίμων), or Daemon, is the divine spirit in ancient Greece whose name means "godlike" or "divider." During the East Roman Empire, Christians saw the statues of Daimon as part of the paganism and began using the word to denote any evil supernatural being.
This usage was made into the Old and New Testaments and lent to the English word "demon."
"A low-ranking class of spirits. While the name may conjure up familiar images of "demons" due to Christianity's influence, daemons were not strictly associated with good or evil and simply thought to be lesser supernatural beings, sometimes acting as tutelary spirits that guided the souls of men. What might be considered a demon today would've been called a "cacodaemon" in ancient Greece — that is, an evil spirit. In contrast, their benevolent counterparts were known as "agathodaemons.""
—Shin Megami Tensei V lore
When the protagonist first finds himself in Da'at as walks a few miles away from the starting area, he's attacked by a horde of five Daemons. He is saved by the appearance of Aogami whose electricity kills three Daemons as he lands near the protagonist, leaving behind two of them as they fight the protagonist and Aogami's Nahobino form in a tutorial battle.
An NPC Agathion in Hamamatsucho issues a side-quest which asks the protagonist to slay three Daemons as revenge of their harassment around the area. Doing so will reward the protagonist with "Agathion's Essence." Daemon begins appearing as regular enemy in Hamamatsucho, a group can be found hanging or perched within a cave there. They can be attacked while at rest unless there is a large elevation difference, and will remain at rest unless the protagonist dashes while near them.
Enemy Daemons may be spoken to by Zeus if he is in the protagonist's party. Zeus strikes up a conversation with it but becomes annoyed when the Daemon forgets who he was until he mentions Keraunos. The Daemon will give Zeus an item before fleeing.
According to Masayuki Doi in an interview, Daemon was the first demon designed for Shin Megami Tensei V, as well as the first one to have been been colored.[1]