Domalus is a country that has two major kingdoms. The Verdant Kingdom, which is ran by humans, and the Signian Empire, ran by creatures widely known as Dragons. At the beginning, there was peace and free trade between the two kingdoms, but the human's rapid technological advance called for greater use of resources and the dragons were unwilling to trade as much resources as they were demanding. War was inevitable.
The First Crimson war, ended in a bloody victory for the dragons. However, what they gained in human resources, they lost in lives. In general, humans outnumber dragons, and with so many dragons dead, there weren't many left to keep internal power struggles in check.Clashes of interest between warring clans erupted in the years following the First Crimson War, to the point where the position of Emperor in Signia no longer held any meaning. The humans, in the meantime, saw their chance to strike and overtook their dragon captors.
The Second Crimson War took place ten years after the First Crimson War and caused many lands in Domalus to fall under human control. For as ruthless as dragons were in combat, humans were outright cruel. Many dragons were sent to live in concentration camps to live in harsh conditions. The few dragon lands that remained were of little interest to humans, but they did keep lookouts stationed on their borders for protection.
It's been almost 200 years since then and the dragons have collectively been working together much better than they had before. They have actively worked on increasing birth rates, public education and furthering the mystic arts of chakra with careful study. However, with the increased presence of human taxes and invasion of the last homes they have, Signian Empire is finally ready to go on the offensive!