When Christmas ends, Santa sheds His corporeal form and returns to the realm below the ice to hibernate, regaining His strength for the next year. His leftover body degenerates over the course of several days, fragmenting into Kringlops which scamper to all points of His lair, finding their own little nooks and crannies to hide in from the elves which see them as pests and snacks.
Kringlops are skittish, emerging only to feed upon insects, droppings, food scraps, and whatever carcass they may find laying about. They are violently competitive for space, but this assures only the strongest, most loyal, and most jolly will survive their eventual metamorphosis into a true Helpful Elf and begin their work in Santa's shop.
Creatures formed from the shed beard become Beardlings, which eventually grow into the Jolly Yetis that stalk the North Pole, offering shelter and gifts to any lost travelers they may find until they regain their strength.
(design adopted from blinkpen, concept own)
