User blog comment:ArmInAss/If I Ever Govern A Monster-Friendly State/@comment-25707465-20150621184137

Concerning the first point (turning into a demon realm), the issue is that this event will end up happening sooner or later with humans having sex with monsters. Unless Demonic Energy dissipate fast enough, but you'll have to calculate and control the generated energy. You'll either have to stock it and release it somewhere, or prevent an excessive generation, and while the former won't be extremely popular for monsters, the latter is asking for troubles.

The best way to reduce "unfortunate encounters" between humans and monsters would be to organize dating sessions between interested humans and monsters, controlled by less radicals and more powerful monsters. Attracting one of Zipangu's local godess would be a good idea to manage this.

Dealing with the monsters-associated cults is a big issues, since as they involve powerful monsters, you could have quite powerful allies against orders. On the long run (and by long I mean actually quite short), you're guaranteed to end up as a demon realm. So you either actively refuse those cults which will not place you on the good side of the more powerful demon realms, or welcome them to keep an eye on them and make sure they're here in case of trouble. In the latter case, you'll even may be able to control their activity.

You won't decide to become a monster-friendly state out of the blue. Chance is, if you decided to become one, monsters are already quite numerous in your countryside. If you're a border state, get sure your new allies are ready to stand for you (and since monster's politics are more about loving each other than some Chronic BackStabbing Disorder, you can be sure they'll try to help you. If you're not a border state, and surrounder by Order territories, better keep your new profile on the low while helping Demon Realms create a solid pathway to your kingdom. You'll have to rely on them more.

The goal of the Monster Lord is quite clear, and it will lead to the whole world becoming more-or-less a Demon Realm. The good new about this is that monsters tend to be too busy getting husbands and getting childrens with said husband while fighting against the Order to have time to fight against their nature of "loving each other" and do petty politics. The only way your nation can be manipulated is by giving a part of his male population to Demon Realms who need husbands, but it's more likely that monsters will move in to try your famous dating sessions.

Sooo, in the end ? Staying a monster-friendly state without turning into a demon realm will be the real challenge here. Ironically, your new darkness-aligned allies are more likely to be helpful against the Order than the opposite, since they won't let petty things such as politics get in the way to help you.