The first dragons were born when a group of powerful souls merged with a surge of pure magic. When a dragon reproduces, it splits off a sliver of it’s soul into each wrymling. The small soul feeds on the magic in its blood, growing ever more powerful with age. When a dragon dies, its soul sliver travels to limbo where it merges with the slowly reforming souls of the original dragons. Someday, dragons will grow scarce and they fail to reproduce as the remaining souls pieces in the material plane dwindle in number. when the last dragon dies, the original souls will wake from their slumber in Limbo, and begin the cycle anew.
The first dragons were stronger than many gods, and claimed the world as their own. They toppled the aboleth empire and raised up many lesser species to serve them. Once the world was firmly in their talons, The reign of the dragons quickly devolved into a state of constant civil war as the dragons vied with each other for supremacy. The world was devastated by their constant fighting, and soon Gods and Titans raised up new races to bring down the tyrants.
Elves and Dwarves were both created to destroy the dragons and replace them as the rulers of the world. The disunity of the dragons allowed these young races to all but wipe the dragons out. They might have even finished the job if the mortals had not turned on each other first.
Today dragons are but a shadow of their former strength, with only the oldest wyrms displaying the true power of their ancestors. despite this, the dragons of today are no closer to uniting and working together than they were at the high f their power. Dragons consider most other members of their species as rivals to be dominated or defeated, and involve themselves in plots and schemes that often take centuries to unfold.