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nagato first summoned the Demonic Statue during his battle with Hanzō and his forces. As soon as it appears it pierced him with a number of Chakra Disruption Blades, causing Nagato to become emaciated. Nagato used it to annihilate Hanzō's men.
Years later, the statue became the means behind Akatsuki's tailed beast extraction. Nagato summons the statue and the other Akatsuki members then convene and, over a period of three days, extract the tailed beast from its jinchūriki and seal it into the statue. As the sealing nears completion, one of the eyes corresponding to the beast that is being sealed opens. When the sealing is completed, the bit falls from the Statue's mouth.
Thus far the statue has had the first seven tailed beasts sealed into it. The Nine-Tailed Demon Fox must be sealed into it last, or else the Statue will be destroyed. After Nagato's death, Madara Uchiha indicates that Nagato was just a pawn that the Demonic Statue had been synchronized with. He states he would like Sasuke Uchiha to be Nagato's replacement, but will wait until Sasuke can be manipulated easier.
[edit] Abilities
The statue attacking
The Statue is able to emit dragon-like forms of energy from its mouth. When these dragons come into contact with ordinary humans, the humans' souls are ripped from their bodies, killing them. When these dragons surround a jinchūriki or a tailed beast, the tailed beast's chakra is gathered to the Statue's mouth and stored inside for future use. Nagato wanted to use these beasts to create a weapon that could destroy a country. Madara wants to reassemble them into the Ten-Tailed Beast.
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its resmeblance to the demoic satue is really close
not to mention that outer path belongs to the RInnegan meanning
there may have been a blood line connection to bot Jubi and sage of sixth paths
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or maybe it was being subdued by the sage and his true eye is not being reviled but if this the jinchuris eye then this will lead to another theory of mine