"We are the descendants of Atlantis. The people known as the Draconians. We were born in the capital of Atlantis, which lay on the Mystic Moon." - Hitomi Episode The Edge of the World.
Draconians, also called Atlanteans, are an ancient race of humans who once lived on the Mystic Moon on the island of Atlantis. They were a technologically advanced society that excelled in engineering, and used their prowess to create the Atlantis Machine. This device allowed them to make thought into reality.
It was at that point that the society of the Draconians became arrogant. Their first major use of the Atlantis Machine was to make themselves into angelic beings by growing wings, as well as increasing their lifespans. However, the use of the Atlantis Machine threatened to destroy their island, and so they used the last of their power to create the world of Gaea.
What was left of their ruined home became the inaccessible Mystic Valley.
The few survivors of the catastrophe went to live on Gaea, where the scant remains of their former technology were viewed as magic. Over time, the Draconians were ostracized by the other inhabitants and viewed as bad omens.
Despite this, Goau Fanel, former king of Fanelia, saw that an individual could not be judged based on the actions of another. When he first saw his future wife Varie, he was struck by her beauty. Though many protested their union, he married her anyway because of her beauty and kindness, and together they had two sons: Folken and Van. What other remaining Draconians exist on Gaea is unknown, though they are rare and possibly close to extinction.