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So i've decided to do another fantasy story, but this involves like mythology and shit. Anyone wanna help write up some ideas?

Here goes my progress so far

I'm no fan of fantasy stories, but I can help you out. Turns out it's like a Transformers storyline, can come out very good if done right. Sorta like Percy Jackson.

There's a but tho, what are they fighting for? Why should they rekt demons in the first place when there's nothing threatening? Will the price of it pay off?

Now I'm not upset about your setting, stories need a shit-ton of love to make it good. I failed once. It was awful. At least it's better now, thought it'll be awkward to share it.

P.S.: Simplify things. Overworld=Godlings(?), Underworld=demons. Trust me people don't want it to be too messy. Also, don't treat it like a video game if it's a novella, This only works in comics a la Homestuck.

I sugest to make the vampire look not very threatining and have a very hight intelegent. And also make the dragon sentient

hmmm, making it like transformers seems like a pretty good idea. So that's a given. Yeah I still have a lot more thinking to do, i just thought i would throw the premise out there and see if anyone had some ideas for it.

Well, I'm just going to throw my shtick in, since I kinda like your idea.
First off, is the story going to be focused around one character or around a multitude of characters, each from the different parts of the world? Kinda like focusing on one platoon of soldiers, or perhaps a Royal, or summin'.
Second, is there going to be minor/major factions in this thing? Like, 1 group of citizens has found out about the arrival of Underworlders on the Middleworld (just spitballing ideas)?
Thirdly, where do the Underworlders go if their land has been taken? The Overworld?
And finally, your idea sounds a bit like The Secret World. Perhaps you should take a little "inspiration" from that?

If I were you, I'd give all the races some shtick to keep them from just being cliche monster archetypes. Some ideas:

-Angels are closer to their Biblical portrayal than the winged humanoids found in pop culture. They're eldritch creatures whose true forms are spinning rings with dozens of wings and animal heads.

-Mermaids are bizarre creatures with the head of a fish and the legs of a human.

-300 or so years ago, a maniacal elf cult launched a massive campaign to kill all the dwarves, and succeeded. Although the cult is long gone and modern elves are greatly ashamed of their past, the stereotype of delves hating dwarves still exists to this day.

-Vampires are actually not destroyed by sunlight, but they're still reluctant to go out in the sun because their pale skin burns easily.

-Trolls are snobbish, refined creatures with expensive tastes. Their technological level is vastly above that of any of the other races.

Well, I used to write once tried to write a fantasy novel, ended up having only a few characters and a very detailed lore. Really, I think I even had written the genetics for cross-race breeding.

Anyway, here's planned there:
- If you plan on making a story of some orphan who turns out to be heir to some whatever shit and in the end becomes something super-overpower, don't.
- Screw Medieval/older times. Screw Sci-Fi. Make a universe that is placed on a technology-tier equal or a few years younger to ours. By that I don't mean makin it in our world, just a completely made-up fantasy world where people have the same level of technology as we do. And, yes, magic used in technology is most certainly a doable thing.
- Make political divisions that are completely unrelated to races. Fuck all those (Race X) Kingdoms or (Race Y) Republics or anything else. Make absolutely no political power hanging over any major race as whole. Don't make race-specific cities, either.
- That said, racism is rather overrated. Make hatreds purely political.

Well, it's just some ideas I had. Don't need to care about it if it'd fuck your setting up too badly.