Draegoni descended from the Dragon gods (according to them), in a land far removed from Alroth. They discovered Alroth through the use of magical teleport spells. The way to get to their homeland was a closely guarded secret, and many Draegoni resources went toward its protection.
Magical energy surges through the Draegoni. They are a very old and knowledgeable race. They discovered Alroth during its feudal age and deemed it a place worthy of settlement. They created portals throughout the land and began constructing their cities using elven slave labour. Elves were inhabitants of another land that had been conquered by the Draegoni.
The Draegoni were led by a council of elder warlords. In general, the Draegoni warlords deemed every race as inferior and attempted to force their laws upon them. One warlord, Dracnor, convinced the council that a strict policy against expansionist nations was necessary, and they needed to be conquered in order to truly have peace. The council worked hard to protect themselves from any possible rebellion.
The Orchans immediately took up arms against the Draegoni because they took a huge portion of Orchan land. Orchans knew nothing about magic, so it was a very short-lived war. The Draegoni manipulated the Orchans by teaching them magic and paying them to work as mercenaries in Draegoni armies.
The Draegoni were powerful allies who shared many magical and technological secrets, but they only accepted those who swore fealty to the realm. Anyone who opposed them were labeled as traitors and conspirators. The Gnomes, being such an agreeable race, had begun accepting them as friends and learning their magic and lore.
The Dwarves of Alroth went back into hiding and were seldom seen in the days of the Draegoni Dominion. They gave up lots of land to the humans and refused to fight if it wasn't for self defense. This is why the Draegoni know so little about the dwarves, and why dwarven people tend to use very little magic.
The spread of magic was faster than a forest fire, and almost as soon as humans got their hands on it, there were many who wanted more. Wizards became as common as blacksmiths, and soon the petty squabbles between nations were fought with magical might.
Humans perceived the Draegoni as an extreme threat, and organized many rebellions against them. Humans kingdoms led the charge against the Draegoni, digging up their old alliances and making new alliances with Elves.
War broke out. Draegoni lost settlement after settlement, and many slaves successfully revolted. Eventually, the war effort succeeded when a cataclysmic event nearly destroyed everything. The Draegoni Elders used magic to make fire rain from the sky. Meteors crashed into Alroth, causing fire and mass confusion. Then one of Alroth's moons came crashing down, leaving a huge crater where the fighting was. After that, many of the Draegoni vanished. It is suggested that they evacuated the main city before the Skyfall, and forever closed the connection from their land to Alroth.
Thus the Draegoni despise Humans in almost every form. They cannot trust any human, because they know humans are all driven by greed and self idolization.
After the event, the Draegoni did their best to keep their influence in the world. Many survived by selling their magic secrets and services. They strive to hold alliances and create recognizable sovereign States against the wary eye of the humans.
Some kept their ties to the Orchan tribes and became renowned warriors and wise men. Some Draegoni fled to the mountains and wait patiently for their shot at revenge.
Draegoni practice heavily in teleportation magic, and cause portals to exist all over the world. The Draegoni people dream of Eventually reconnecting with their homeland and re assimilating with their people. Some wish to leave all together, and others wish to punish everyone in the land for what they did to the Draegoni.