Daemon power

The Daemon devices have changed the face of Salike, producing a clean power source capable of running the machines which drive the industry of the city. The Intsitute of Magi-Technicians hold the secret to the creation of the devices and seem to show no desire to share that secret. This gives them extraordinary power over the city of Salike, though they show no desire for actual governance. They prefer to let others rule while they simply exert influence from the background when it suits them.
There is a public and accepted explanation of how the Daemon devices work at a basic level. They are complex clockwork spheres, which act as physical prisons for the Daemons they contain. The spheres are then bound with magic wards and siphons, these add an extra layer of protection and also allow the essence of the Daemons to be drained slowly over time. The construction of the spheres is only possible using an alloy made from the metal which comes from The Traveller's meteorites.
As for the Daemons themselves, the Institutes states that these are evil entities, which have come up through the rift from the bowels of the Earth. These entities are capable of entering a person and walking the surface in their skin. They are made mostly of essence and as such wield a great deal of power. It is this essence which the institute has tapped into as an alternate power source. By trapping the daemon inside the sphere and wrapping it in magic they are able to harness this essence as they please.

Essence is present in all living things and there are even those who are able to wield their own essence to affect the world around them: these are known as mages or magi. Since essence is essentially tied to a person's life force, wielding it is extremely taxing and mages must rest and reccuperate afterwards. Depending on the level of essence wielded, this rest can take take anywhere from a few hours to a week.