Correctly, he's a wandering spirit who "feeds" on other people's emotions (without stealing their feelings or anything nasty), especially to the emotions they get from his gifts - treat him nice out of courtesy and kindness, and he'll be a nice guy. Adore him out of greed, and he'll grow into a grotesque monster.
Oh really? Ah well, I stopped caring so much about who credits me on this, lawl. I kinda wish people would stop faving it so much. It was just a wee doodle from a long time ago, and for some reason lotsa people dig it...
But thanks for the kind words, though. They's appreciated regardless. No-face would want to hug you too, I'm sure. c:
Found this through a Miyazaki Tumblr and my sister and I made happy noises. He will have to pry me off with a crowbar if I hug him though. I would love to make a shirt out of this in the future, with your permission of course. Pretty please? <3