This story was great! The pacing was well done to properly convey the conflict, the setting and characters were given the right amount of detail for a 1000 word story, and the unconventional weapon was clever and original. The almost Terry Pratchett-esque logic of a weapon to use against the daemon was not what I was expecting for the setting, and I love it all the more for that!
Like another reader said, the line "it moved like an animation with half its frames lifted out" stuck out as a really fun, effective description.
If I had to pick one part of the story that felt weak to me, at times the dialogue felt manufactured at times, instead of natural conversation between individuals. It could very well be a question of preference and it's honestly a minor point on an amazing piece of prose.
Bravo!
EDIT: Desperate Times... times. Like a times table. Please tell me that was intentional.