While they're called Elves, they're not elves, not in the Tolkien way. The word elf (ælf in Old English) denoted white, feminine creatures that are always male, at least until around the 11th century, but they're also of what they called the "hedge" or mark (mearc). The hedge is between the in-group and the out-group. The in-group is where safety is at. It's your village, town, or farmstead. While the out-group lives beyond the forest next to you, beyond the glade, and beyond the hills, and for off; it's where the giants, eoten (the ettins), live and where the "barbarians," like the viking invaders live. The out-group is always dangerous, always harmful to the whole in-group; they represent existential threats.
As for creatures of the hedge, where the gods—like Woden, Tue, Thunner—and the elves lived, they weren't exclusively harmful. They could be useful, too, and the harm they carried was only upon individuals, who committed taboos or did something really stupid. Think of the forest. A mushroom can be poisonous and it can be edible, and so it is of the hedge.
My idea is that Elves were, as the legends told about them state, mighty beasts that lived in the forests and hills that separated the different settlements of the Elfkin, who the Elves had begotten without copulating, through sacrificing parts of themselves, and so the Elfkins were born. Each Elfkin carries a characteristic of his progenitor. The Ravenkin have great black wings, the Lykin can unleash devastating roars, and the Spitherkin can weave threads, and so on.
The the many Elfkin, the Elves were deities, whom they worshiped and respected, but also feared because they're of the Hedge. They taught the Elfkin how to produce magnificent creations that little of which survived into the current day—stairs that pass through mountains, city walls, so tall a man is like an ant before them, how to craft jewelry, and so on, but they also taught them how to rule, but all of that was through Elfdreams.
Because they're of the Hedge, Elves weren't meant to communicate (for reasons I won't discuss here) directly with their Kin, and so they communicated through Elfdreams, which were induced through ingesting (still not sure on how) the leaves of Elfthane. Elves that broke this law were smote, and the Kin that entered the hedge were either made to come down with Elfshot or killed by their Elf.
Elves also protected the boundaries between each Kin, preventing them from marching into the territories of each other and forbidden from invasion.
A group of Elves that would be known as the Lordsic Elves broke these laws. They believed them as unjust. How come an Elf that can crush another with its paws have to eat at the same table as another Elf who should have been served to him on the table? So they rebelled.
Not only did they communicate with their Kin directly, they taught them how to create things that were too cruel to be called created; they made constructions, gruff and destructive. They used them to spill the first blood and destroy the first village, town, and city. But none of their constructions remain, for they weren’t just destructive to creations, but also to themselves.
Another set of Elves opposed them and wanted to preserve the order as it was. They're called the Right Elves and their Kin the Right Kin, and so a war unfurled between them. The Forewar.
It was a brutal war; most of Right Elves perished. Only seven remained, but even they perished later on. Many of the Lordsicks ceased to be. Some are Kin without their Elf, and others are Elf without Kin. But most are no more, neither Kin not Elf. Still, there are Lordsic Elves who still live, but they're akin to mere beasts (for long reasons).
This skips a lot lore and background information, but I hope it doesn't come out as too vague.
Important historic note (if you care): while the title says "based on Anglo-Saxon Perception," the historic corpus of elves (ælfe) that we have is probably only representative of the higher strata's beliefs of elves, not all Anglo-Saxons. If you're interested, and willing to go through a dense read, refer to Elves in Anglo-Saxon England by Alaric Hall.
As for creatures of the hedge, where the gods—like Woden, Tue, Thunner—and the elves lived, they weren't exclusively harmful. They could be useful, too, and the harm they carried was only upon individuals, who committed taboos or did something really stupid. Think of the forest. A mushroom can be poisonous and it can be edible, and so it is of the hedge.
My idea is that Elves were, as the legends told about them state, mighty beasts that lived in the forests and hills that separated the different settlements of the Elfkin, who the Elves had begotten without copulating, through sacrificing parts of themselves, and so the Elfkins were born. Each Elfkin carries a characteristic of his progenitor. The Ravenkin have great black wings, the Lykin can unleash devastating roars, and the Spitherkin can weave threads, and so on.
The the many Elfkin, the Elves were deities, whom they worshiped and respected, but also feared because they're of the Hedge. They taught the Elfkin how to produce magnificent creations that little of which survived into the current day—stairs that pass through mountains, city walls, so tall a man is like an ant before them, how to craft jewelry, and so on, but they also taught them how to rule, but all of that was through Elfdreams.
Because they're of the Hedge, Elves weren't meant to communicate (for reasons I won't discuss here) directly with their Kin, and so they communicated through Elfdreams, which were induced through ingesting (still not sure on how) the leaves of Elfthane. Elves that broke this law were smote, and the Kin that entered the hedge were either made to come down with Elfshot or killed by their Elf.
Elves also protected the boundaries between each Kin, preventing them from marching into the territories of each other and forbidden from invasion.
A group of Elves that would be known as the Lordsic Elves broke these laws. They believed them as unjust. How come an Elf that can crush another with its paws have to eat at the same table as another Elf who should have been served to him on the table? So they rebelled.
Not only did they communicate with their Kin directly, they taught them how to create things that were too cruel to be called created; they made constructions, gruff and destructive. They used them to spill the first blood and destroy the first village, town, and city. But none of their constructions remain, for they weren’t just destructive to creations, but also to themselves.
Another set of Elves opposed them and wanted to preserve the order as it was. They're called the Right Elves and their Kin the Right Kin, and so a war unfurled between them. The Forewar.
It was a brutal war; most of Right Elves perished. Only seven remained, but even they perished later on. Many of the Lordsicks ceased to be. Some are Kin without their Elf, and others are Elf without Kin. But most are no more, neither Kin not Elf. Still, there are Lordsic Elves who still live, but they're akin to mere beasts (for long reasons).
This skips a lot lore and background information, but I hope it doesn't come out as too vague.
Important historic note (if you care): while the title says "based on Anglo-Saxon Perception," the historic corpus of elves (ælfe) that we have is probably only representative of the higher strata's beliefs of elves, not all Anglo-Saxons. If you're interested, and willing to go through a dense read, refer to Elves in Anglo-Saxon England by Alaric Hall.
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