So far, I've made some proc-gen dream clouds after finally learning MultiMeshInstance3D. And then some fluffy dream cloud sheep, which you'll herd to their food source (dreams glitter flakes?). As they eat, they'll grow puffy cloud wool, which you'll harvest, to make more clouds to reach more food, or to make more fences to keep them from falling.
The main herding mechanic (not implemented yet) will be to wave around a hand fan to blow the sheep around.