Lots of creative folks around here.  I could use some advice on some NPC relations.  I was up at 4am this morning with the toddler, so my brain is a bit fried at the moment and I have a game tonight I am DM'ing (though the PCs may not get as far as this Current Situation, in tonight's session, so don't let that time frame deter any later advice).  Perhaps others can use this thread for advice on their game too, as an ongoing thing (maybe not).

BACKGROUND:

The dungeon is a sort of living malevolent spirit.  It trapped the "residents" there through manipulation (the dungeon speaks to them, with a magical face appearing on doors and walls sometimes).  It tricked most of the denizens into agreeing to becoming "residents", and now most are simply trying to escape.  Residents have some privileges (like doors automatically open for them, while non-residents must get lucky in their attempts to try and bash a door open, and access to some food and water and healing sources).

There are two factions on Dungeon Level 2, both tricked into becoming residents.  One is the Bullywugs, and the other is the Kobolds.  They don't like each other, each having been manipulated by the malevolent dungeon spirit into wanting to attack the other.  The Bullywugs claim the Kobolds tried to eat their pet (a giant crab), while the Kobolds claim the crab is necessary for a ritual to allow them to escape the dungeon.  They've been raiding each other ever since.

The Kobolds have some dark ritual warlock types.  Those warlocks used a ritual to create some shadowy kobolds that fly.  So between the shadows, the warlocks, and the warriors, you essentially have three types of Kobolds within that clan. Bullywugs had a similar setup (without the shadowy types).

The PCs have allied themselves with the Bullywugs, helping them obtain an ingredient that the Bullywugs think will allow them to cast a ritual spell that will allow them to escape the dungeon.  The PCs have not encountered the Kobolds yet, though they know of them from their discussions with the Bullywugs.

CURRENT SITUATION:

The PCs are on Level 1, above the Level 2 discussed in the background, where they've fought through some Striges, a Harpy clan, a mysterious flying demon-type (who went down so quick they couldn't find out what he was and what he was doing there, beyond a small golden trident he left behind), and some giant spiders.

The PCs stumble on a meeting between the Kobolds, and another of those mysterious flying demon-types (not too far from another exit from the dungeons, though as residents they are magically prevented from leaving the dungeon).  The Kobolds are represented by each of their different types: a warrior, a warlock, and a flying shadow.  They're negotiating with the demon about something.

IDEAS/ADVICE:

1. What are the Kobolds and the Demon negotiating about, and why did the Kobolds come to this place?

2. How did the Kobolds get past the Stirges, Harpies, and Giant Spiders, in order to get to this point?

3. If the PCs try to negotiate with the Kobolds, what could the Kobolds and/or the Demon want of them?

4. What is the Demon, it's relationship to the dungeon, and what is the mysterious small golden trident they carry, if anything?

Thanks guys, much appreciated!

The demons are trapped, too, but can get out for short periods by luring new victims into agreeing to inhabit the dungeon.  They want the Kobolds to betray their non-trapped kin, and they're just about desperate enough to do it.  But they want help against the Bullywugs in return.  Plus they don't trust the demons because that's how they got in here in the first place.

They survived the other dangers through attrition.   Put kobold bones in those lairs.

The demons want the PCs to help the Kobolds,  so they don't have to...

That's about all I've got.

Quote from: Mistwell;6817891. What are the Kobolds and the Demon negotiating about, and why did the Kobolds come to this place?

2. How did the Kobolds get past the Stirges, Harpies, and Giant Spiders, in order to get to this point?

The demon isn't especially worried about the spirit, it was summoned by the kobolds to control it and gain mastery over the dungeon. As part of this pact the kobolds were able to waltz past the servants of the spirit, perhaps granted a temporary boon of diabolical invisibility, which puts time pressure on them in negotiations.

But it never pays to trifle with demons - it is trying to sell a dark reliquary to the tribe, which will enslave the spirit if its original bones can be found. What the kobolds don't know is that the bones are in the lair of something much more dangerous, which if released will roam far and wide causing chaos after it's done with drinking the souls of its dog headed apéritif. This is the unspoken aim of the demon, and the higher the price it can extract the greater its merriment.

Quote from: Mistwell;6817893. If the PCs try to negotiate with the Kobolds, what could the Kobolds and/or the Demon want of them?

The demon just wants to wreak havoc - if it thinks the PCs will help to release the beast without actually destroying it, it'll 'grudgingly' allow the PCs to join the 'quest', perhaps divesting them first of crucial magical items.

If the PCs are too powerful, it might just vacate the area leaving the wrath of the kobolds to descend. Or if it spots a particularly corporeal PC, it might try to make a private pact, holding up control of the dungeon as a prize, or fabulous treasures hidden secretly in the lair. Perhaps this has already happened and the kobolds have an enemy within.

Quote from: Mistwell;6817894. What is the Demon, it's relationship to the dungeon, and what is the mysterious small golden trident they carry, if anything?

The trident is a summoning wand, used to keep the fiend at bay, or what they used to get by the hazards. Possibly the dungeon spirit formerly made a pact and escaped it by binding itself to this dank underground realm, now the demon comes seeking payment in full. Lots of tasty possibilities.

Quote from: Mistwell;15004061. What are the Kobolds and the Demon negotiating about, and why did the Kobolds come to this place?

The demon is a representative of the "entity", who is a manifestation of a tear between Limbo and the Abyss. The "entity" is essentially a sentient demi-plane and the demonic powers of the Abyss want to control it. This particular location is a weak point for the plane that allows easy crossing from the Abyss, so the demon wanted the kobolds to come here.

Quote from: Mistwell;15004062. How did the Kobolds get past the Stirges, Harpies, and Giant Spiders, in order to get to this point?

The "entity" allowed them passage because it fears the demons who are trying to control it. The demons essentially told it to give the kobolds passage.

Quote from: Mistwell;15004063. If the PCs try to negotiate with the Kobolds, what could the Kobolds and/or the Demon want of them?

The demon wants what all demons want: chaos and evil. It cares not for any of the residents and their troubles, only what they can gain from the situation. If they can manipulate everyone into conflict and collect their souls in the bargain, excellent. Otherwise, watching the slaughter is at least some minor entertainment. The kobolds are merely hapless pawns who will do anything to get out of the place.

Quote from: Mistwell;15004064. What is the Demon, it's relationship to the dungeon, and what is the mysterious small golden trident they carry, if anything?

The demon is an emissary from the demonic powers of the Abyss. Controlling this new demi-plane could give them unfettered access to Limbo which could in turn allow them to dominate the denizens of that plane. In addition, the "dungeon/entity" seems to have a connection to the Prime Material plane and the ability to lure people into it. If it turns out that this is some sort of bridge to the Prime Material plane, then the demon interest in it will be multiplied ten-fold.

The "trident" is actually a planar tuning fork.

Quote from: Mistwell;6817891. What are the Kobolds and the Demon negotiating about, and why did the Kobolds come to this place?

2. How did the Kobolds get past the Stirges, Harpies, and Giant Spiders, in order to get to this point?

3. If the PCs try to negotiate with the Kobolds, what could the Kobolds and/or the Demon want of them?

4. What is the Demon, it's relationship to the dungeon, and what is the mysterious small golden trident they carry, if anything?

1. The Demon is trapped in the dungeon, but is also in communication with the lower planes. He can summon other denizens of the Abyss to come to the dungeon, but once summoned, they would not be able to leave. The Demon, having been here for quite a long time, got chastised in no uncertain terms by his demonic Overlords NOT to contact the Lower Planes again.

The Kobolds are trying to change that. They were able to come up with some sort of ritual which will protect the demon's soul, using a giant crystal obelisk as a kind of catalyst located on level 2, and maybe allow it to incarnate itself in the body of a visitor, melding with the visitor's spirit in order to be able to exit the dungeon.

In exchange, the Demon should go against his patrons' orders, and summon demons to the dungeon which could each consume one kobold's spirit, melding with it, then reincarnate in/possess the bodies of visitors themselves to exit the dungeon. Basically, the kobolds are so desperate that at this point they prefer to see part of their souls eaten by demons to then ride along as demons possess visitors to escape the dungeon, maybe under the misguided advice of their Shaman believing he can make the kobolds take over the demon's souls once they are consumed, rather than stay one more minute prisoner here.

2. The demon granted them access. He commands to the Stirges and Spider kinds, and the Harpies are afraid of him. They wouldn't dare going against his wishes.

3. Welcome them. They would try to find a way to get more of them in the dungeons. The ultimate goal being to overpower/drug the party and every visitor they can get to use them in the grand Crystal Obelisk ritual as the demon melds his soul with one of them and the others he summoned just before, just as the kobolds killed themselves ritually to be absorbed by the catalyst and themselves mix their souls to the demons', do the same.

4. See above. Though the Demon could have some insight into the nature of the Dungeon's spirit, and why it is that infernal denizens themselves get trapped when summoned into the dungeon, and/or why his lower planes' masters would NOT want him nor his brothers to summon more and more demons to the dungeon to take over the whole area. The Trident acts as a key which could open a gate to the lower planes, and maybe others. What the implications would be at the dungeon's level if it were to be used are for you to determine.

Thank you guys! That was a huge help.  Here is what I've settled on for now, borrowing from several bits of advice, and pending later changes:

Demons can leave dungeon for short time to lure new residents to dungeon, per a pact they made with the Dungeon Spirit, using the golden tridents to come and go, and avoid harassment from other residents (it only functions for residents, so the PCs cannot get it to work).  

The Kobolds have a ritual means to possess the unconscious body of non-residents, and escape the dungeon that way.  

The Kobolds want the Demons to bring them new non-residents, for their spirits to possess.  The Demons wants to possess non-residents using the Kobold ritual as well (though they don't know how the ritual is done), so they can escape permanently too.  

The golden trident was temporarily given to the Kobolds by an earlier demon so they could make this meeting (they don't know it would allow them to temporarily leave the dungeon - they just know other residents avoid them when they have it).  They're meeting this new demon close to an exit, where that new Demon intends to exchange non-residents for their new pact to help the demons escape (an agreement to be sealed with a sacrifice, to make it binding).  

The new non-residents are new adventurers brought from the Adventurer Guild that the PCs belong to.  Is the Adventurer's Guild infiltrated by other demons in hiding?

The Kobolds wanted the giant crab because it was a non-resident (never agreed to the pact with the Dungeon Spirit, as it's an animal).  That was their initial experimentation target, until things went wrong with the Bullywugs.

Quote from: Mistwell;681875That was their initial experimentation target, until things went wrong with the Bullywugs.

This just reaffirms my position. Never trust a bullywug!

I didn't read ahead so it might be the same (not sure).

1) Perhaps about joining forces?

2)They didn't; they got into the dungeon from a different entrance.

3)The Kobolds will want to find out how the Player Characters got into the dungeon. Originally, they believed that there was only one entrance, though in talking to each other, they've realized there are 4 entrances. One of which there searching for which is not too far off-from where the Player characters have just arrived through (Which the PCs may or may not reveal.)

4)The Demon could really be the minion of whatever kind of entity controls the dungeon. They roam the dungeons pretending to help the trapped but really their jobs, is to keep the trapped inside. The trident could be the key to leaving the dungeon, but there are four total and one for each doorway entrance. They could have symbolic markings on them that will clue the PCs which trident goes with which door or whatever...

Off the top of my head-GL

Excellent stuff here, guys!