>>719042590
Demon literally means spirit, it can mean guardian spirit (agathodemon) or evil spirit (cacodemon).
In SMT5 it explains that all gods were reduced to demons because YHVH took their divinity when he took the throne, and put it as "knowledge" inside a tree in the garden of eden. Which humans were tricked into eating. Now humans have gods knowledge inside them (the divinity aspect you'll hear talked about in Gnosticism).
Demons couldn't take their knowledge back because as long as YHVH was on the throne, trying to take it back would turn them into a silly little red goblin.
Once they learned god was dead, all demons went to look for their Knowledge and become proper Gods again (Nahobino.)

This actually mirrors real life religion, how Yahweh, the hebrew God of War became YHVH/The Christian god and the main ruling religion.