To be frank, Carmenia Federation has reached this point, thanks in no small part to Vivian's monumental contributions.
When she initially mutated into a demon and battled another with demon armor scales, it directly pulled Carmenia down from its pedestal.
The former beacon of civilization suddenly became notorious as a demon breeding farm.
Despite numerous explanations from Carmenia's officials, striving to prove that "demons have nothing to do with the Federation," the world simply doesn't believe it.
Previously, the Azure Palace frequently held press conferences; now, they might not hold one even in a week, fearing journalists would inquire about demons.
Since that demon battle, frequent unrest has erupted domestically in Carmenia, leading to a significant economic decline.
Moreover, losing financial dominance caused prices to skyrocket across the Federation, with the chaos persisting to this day.
