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Demonic Essences have no function or use in game, except as they are used in crafting recipes. They are Account Bound ([[BoA]]) and can not be traded or given to other players, though they may be sold to NPCs (for 25g). The developers' intent with DEs was to force players to play some and farm their own DEs for the new v1.07 crafting recipes, rather than simply being able to buy DEs along with all the other crafting materials required.
It's unclear why Demonic Essences are the yellow Rare color rather than light blue, like all other crafting materials, or why they only stack up to 100.
==Demonic Essence Drop Rates==
Blizzard detailed the odds for Demonic Essences to drop in the [[Patch 1.0.7]] notes. They are only found on Inferno difficulty level, and only the [[Monster Power]] setting affects their drop rate. Factors such as [[Magic Find]] or the number of players in the game do not impact DEs in any way. The odds are as follows:[http://diablo.incgamers.com/blog/comments/diablo-3-patch-1-07-analysis-and-full-notes]
<blue>Each level of Monster Power will increase the drop chance of Demonic Essence from Elites and bosses according to the following values:
* MP 10: 38.9061%
</blue>
Note that the odds of one dropping increase by 10% (based on the previous value) per MP level. This ratio has been criticized by players who feel the drop rate of DEs is too low, since monster hit points and the general time to kill enemies increases by considerably more than 10% per MP level, which (some argue[http://us.battle.net/d3/en/forum/topic/9280358077]) makes the drop rate of DEs too low on higher MP levels.
===Utility and Availability===
Opinions differ on the value and availability of Demonic Essences, with a definite divide between rich and non-rich players.[http://us.battle.net/d3/en/forum/topic/9280218053?page=3#53]
Rich players, those with huge amounts of gold to spend on crafting, feel that DEs drop much too infrequently, or just wish they could be sold or traded. After all, a player with enough gold to can buy all of the other materials, there's no drop rate of DEs that is high enough to meet his needs.
On the other hand, players on more of a budget can easily accumulate more DEs than they can afford to use, given the high cost of crafting each item and the impossibility of trading or selling those items to recover any of their costs.
It's often speculated that Blizzard may allow some form of DE trading, but as of v1.08 this remains only speculation.
* Archon Razorspikes of Vit/Str/Int/Dex: 50k gold + 30 [[Exquisite Essence]] (blue) + 5 Tomes of Secret + 1 Demonic Essence
More crafting recipes requiring Demonic Essences may be added in future patches. In fact it seems quite likely as most players soon had an overabundance of DEs. Even though Demonic Essences are [[BoA]] and thus can not be sold, even fairly casual players soon accumulated more of them than they needed for their crafting. (During the course of normal play, a character will find DEs more quickly than the other materials and gold required for crafting. However, since the other materials can be purchased via the Auction House, the crafting recipes and DEs were meant as a sort of [[gold sink]]. It's unclear why Demonic Essences are the yellow Rare color rather than light blue, like all other crafting materials, or why they only stack up to 100.