[Kaito Yamakage]

Spoiler for :

I've been getting the feeling for some reason the MC will end up allying the demon race and have to try and meditate them with the empire.

The empire has too much invested in the war and was making use it for create peace across the continent so if suddenly the demon race isn't the "big bad" it wouldn't work too wel for them though... so the plot will probably head in that direction.